Union Bank, Others Provide $85MM Facility to CAI International
CAI International, Inc., a lessor of intermodal freight containers, reported that it has entered into an $85 million senior credit facility for the acquisition of railcars. Union Bank is the administrative agent, joint lead arranger and sole bookrunner, and U.S. Bank is the syndication agent and joint lead arranger.
The senior credit facility is a three-year revolving line of credit with an 80% advance rate on the net book value of eligible railcars, as defined in the agreement. The facility has a floating rate indexed to LIBOR plus a margin ranging from 1.50% to 2.25%. The initial margin is set at 2.25%.
Victor Garcia, CEO of CAI, commented, “This is our first credit facility for the acquisition of railcars and we are very pleased with the support we have received from our lenders and the confidence they have shown us by supporting our efforts in growing our rail business. We have been pleased with the opportunities we have considered this year for the acquisition and leasing of railcars, and this facility will provide CAI with the committed financing to make equipment acquisitions.”
He continued, “During the process of putting this facility together, we have been able to work with some of our existing lenders as well as new lenders to our company.