Intermodal container lessor Textainer Group Holdings has closed a $1.2 billion warehouse securitization facility.The new facility called Textainer Marine Containers II Limited (TMCLII) acquired a portion of the intermodal containers owned by Textainer Marine Containers Limited (TMCL), which is another asset owning subsidiary. TMCL used the proceeds it received from TMCLII to terminate its $850 million securitization facility.The interest rate on the TMCLII securitization facility is 2.625% over Libor during an initial two-year revolving period. If the TMCLII securitization facility is not refinanced or renewed after this period, the facility is structured to partially amortize in the next five years and then mature.
The syndicate of participating banks include: ABN AMRO, Bank of America, Credit Suisse, Deutsche Bank, EverBank Commercial Finance, ING Bank, Key Equipment Finance, Royal Bank of Canada, SunTrust Robinson Humphrey and Wells Fargo Bank. Wells Fargo was the agent bank.
"The closing of this financing marks another milestone for Textainer," said Philip Brewer, Textainer's president and CEO. "We are continuing to see strong demand for containers and the additional liquidity from this significantly larger securitization facility further strengthens our capacity to grow organically, support customers and continue as the industry leader."
"This securitization facility enhances our already strong capital structure, and coupled with our recent $400 million asset-backed notes issuance provides ample dry powder for new investments," added Hilliard Terry, III, Textainer's executive vice president and chief financial officer. "We are pleased with the improved pricing and significantly increased size of the new warehouse facility compared to the expiring facility."