Textainer Group Holdings Limited announced that Textainer Marine Containers VII Limited ("TMCL VII"), an indirect, wholly-owned subsidiary of the Company, issued $450 million of Fixed Rate Asset Backed Notes (the “Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the "Act") and to non-U.S. persons in accordance with Regulation S promulgated under the Act. The Notes comprise of $381 million in Class A and $69 million in Class B Notes rated A(sf) and BBB(sf), respectively, by Standard & Poor’s.
The Notes have a weighted average life of approximately four years and are secured by a pledge of TMCL VII’s assets. Proceeds from the issuance were used primarily to pay down debt in thier secured debt facility, revolving credit facility and pay in full Textainer’s 2017-1 Notes.
“We are pleased with the high level of investor interest in the issuance, which allowed us to upsize to $450 million during this favorable financing environment.This transaction further enhances our financial platform with numerous benefits, such as lowering our blended effective interest rate and freeing up borrowing capacity in our short-term facilities for additional container investments,” commented Michael K. Chan, Textainer Executive Vice President and Chief Financial Officer.