TAL International Container Corp. plans to issue a $241.74 million securitization backed by container lease revenues and residual cash flows.

The TAL portfolio consists of 186,581 containers from 7 different marine cargo container types and all containers are currently out on lease, according to a Standard & Poor’s presale report. The ratings agency assigned the class A notes a preliminary  ‘A’ – ratings and the class B notes are rated a preliminary ‘BBB’ ratings.

Merrill Lynch, Pierce, Fenner & Smith and RBC Capital Markets are the initial bookrunners on the transaction.

The deal is the third series issued from TAL V master trust. Series 2013-1 consisted of two classes, originally equal to $271.75 million, issued in February 2013. Series 2013-2 also consisted of two classes with an original face value of $268.70 million, issued in November 2013.

S&P said it expected a decline in container lease securitization in 2014 from last year’s $3.2bn due to lower refinancing needs.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.