Textainer Group Holdings is a wholly owned subsidiary of the company, closed an amendment to extend the term and lower the interest rate on Textainer Limited’s $700 million five-year revolving credit facility.
The group of lenders include Bank of America, Royal Bank of Canada, Union Bank, Wells Fargo Bank, BNP Paribas, JPMorgan Chase Bank, KeyBank, DBS Bank, Santander Bank, First Hawaiian Bank, BB&T, Citibank and Umpqua Bank. Bank of America also serves as administrative agent on the revolving credit facility.
Proceeds from borrowings under the revolving credit agreement are used to purchase containers and for general corporate purposes. The credit agreement was originally established in September 2012 and now expires in 2020. The interest rate under the credit agreement is a spread over the London Interbank Offered Rate (LIBOR) which varies based on leverage and is LIBOR plus 125 basis points upon the effectiveness of the amendment.
“We are pleased to execute an extension and re-pricing of our $700 million revolving credit facility. The interest rate on this facility was reduced from LIBOR plus 1.50% to LIBOR plus 1.25%. We will now enjoy very attractive terms for 5 years, enabling us to competitively meet our customers’ container leasing needs,” commented Hilliard C. Terry, III, Textainer EVP and CFO. “The excellent terms we secured demonstrate our ability to differentiate Textainer as the clear leader in container leasing and continue our successful efforts to reduce our overall funding costs.”
Textainer a lessor of intermodal containers based on fleet size with a total of more than 2.2 million containers representing more than 3.2 million TEU in our owned and managed fleet.