Intermodal container lessor Textainer announced that its wholly owned subsidiary Textainer Limited entered into a $600 million, five-year revolving credit agreement with a group of financial institutions led by Merrill Lynch and Wells Fargo Securities. The bank group included: Royal Bank of Canada, Union Bank, HSBC Bank, KeyBank, JPMorgan Chase, Citibank, DBS Bank, Sovereign Bank, First Hawaiian Bank, Branch Bank and Trust Company and Umpqua Bank.
Textainer said Bank of America will serve as administrative agent on the revolving credit facility. The interest rate under the credit agreement is a spread over LIBOR, which varies based on leverage. At the closing, the initial interest rate will be LIBOR plus 150 basis points.
The proceeds from borrowings under the credit agreement are expected to be used to purchase containers and for general corporate purposes. The facility also provides for a possible $100 million increase through an accordion feature the company may elect to utilize.
The new credit agreement represents a renewal and expansion of an existing five-year, $205 million revolving credit facility.