Container lessor Textainer Group Holdings announced that TAP Funding, a 50.1% owned subsidiary of the company, entered into a $170 million, three-year revolving credit facility with a group of financial institutions led by ABN AMRO Capital USA, and including ING Belgium NV/SA, Sovereign Bank and Union Bank. ABN AMRO Capital USA will serve as administrative agent for the facility.

The interest rate under the credit agreement is 200 basis points over LIBOR. The proceeds from borrowings under the credit agreement are expected to be used to purchase containers and for general corporate purposes. The facility also includes a $55 million accordion feature, which TAP may elect to utilize and increase the size of the facility.

The facility represents the replacement and expansion of an existing three-year, $120 million revolving credit facility which had an interest rate of 375 basis points over LIBOR. The prior credit agreement remained outstanding following the company’s acquisition of TAP in December 2012.

“This new bank facility, with its attractive lower cost of funds and improved terms, will provide additional liquidity enabling Textainer to continue to meet our customers’ container leasing needs at attractive terms,” said Philip K. Brewer, Textainer president and chief executive officer.