Textainer Group, a lessor of intermodal containers, has amended its $1.2 billion warehouse securitization facility, extending the term and lowering the interest rate.

The term of the facility, currently two years, has been extended by an additional year, to May 2015, according to a press release issued today. The interest rate was lowered to 1.95% over LIBOR from 2.62% over LIBOR previously.

The company said also lowered the facility’s unused fee and improved other terms.

If the facility is not refinanced or renewed following the two-year period that ends in May 2015, the facility is structured to partially amortize over the following five years and then mature.

Wells Fargo Bank was the structuring agent and arranger. Other syndicate members include: ABN AMRO Capital USA, Bank of America, Credit Suisse Deutsche Bank, ING Bank Belgium, Key Equipment Finance, Royal Bank of Canada, Sovereign Bank, and SunTrust Bank.

“The extension of this sizable securitization facility with a lower cost of funds and improved terms, provides Textainer with continued liquidity and flexibility, enabling us to competitively meet our customers’ container leasing needs,” said Hilliard C. Terry, III, Textainer’s chief financial officer.

“Given the continued low interest rate environment and other options available to us, we see additional opportunities to further reduce our funding costs and improve our competitive position,” he said.

In April, Textainer said its 50.1% owned subsidiary, TAP Funding Ltd., entered into a $170 million, three-year revolving credit facility with a group of financial institutions led by ABN AMRO Capital USA.

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