TAL Advantage IV, a wholly owned subsidiary of TAL International Group, has completed its offering of $197 million fixed-rate secured notes.
The series 2010-1 notes were rated ‘A’ by Standard & Poor’s and were issued at par with an annual interest rate of 5.5% and scheduled maturity date of July 20, 2020. TAL will use the proceeds of the offering to purchase containers and for general business.
"We are very pleased with the successful offering of the TAL Advantage IV notes," Brian Sondey, president and CEO of TAL International. "This transaction represents the first intermodal container ABS term financing since 2007, and the facility will become an important and cost-effective part of our long-term capital structure to help us finance TAL's accelerated level of investment and growth this year. We are especially gratified that we were able to secure an "A" rating for the notes from Standard and Poor's, and believe this is reflective of the inherent strength and stability of TAL's business, as well a recognition of TAL's operating capabilities and strong market position."
In addition, another TAL subsidiary, Tal Advantage III, will also reduce the size of its ABS credit facility to $325 million from $370 million, the firm announced.
