Textainer is shopping $200 million of securities backed by container leases, according to a presale report published by Standard & Poor’s.
The $200.8 million Textainer Marine Containers III, Series 2014-1 will issue a single tranche of notes with a preliminary A’ rating.
Wells Fargo Securities is the lead arranger and joint bookrunner; other bookrunners include Merrill Lynch, Pierce, Fenner & Smith and Credit Suisse Securities.
The notes are backed by a portfolio includes 161,403 units that comprise 11 different marine cargo container types, according to S&P. Of the total, 159,572 units are currently out on lease, and 1,831 are not currently leased. The initial fleet, based on a $582.8 million net book value, includes 40-ft. high-cube reefer containers (34.48%), 40-ft. high-cube dry containers (31.03%), 20-ft. standard dry containers (28.98%), 40-ft. standard dry containers (1.66%), 20-ft. standard reefers (1.05%),45-ft. high-cube dry containers (0.99%), and 20-ft. high-cube reefers (0.27%), all of which benefit from relatively stable demand. The remaining balance (1.53%) comprises special containers.
The fleet's average age is 2.93, which S&P said is relatively young for assets that typically have 15-year useful lives. Among other strengths, according to S&P, that approximately 94.1% of the portfolio comprises long-term leases and direct finance leases, which are shielded from rate reductions during a downturn.
Among the deal’s weaknesses , approximately 67.0% of the pool is held by the 10 largest customers, the performance of which may affect the issuer's revenue receipts.
