Cronos Holding Company said its indirect wholly owned subsidiary, CF Leasing, has entered into a $550 million five-year revolving credit agreement with a group of banks led by Bank of America and SunTrust Bank.
Other participating banks include including BNP Paribas (acting through its Cayman Branch), HSBC Bank USA National Association, Royal Bank of Canada, Union Bank, Wells Fargo Bank, Branch Banking & Trust, Nomura Corporate Funding Americas, California Bank & Trust, JPMorgan Chase Bank and Umpqua Bank.
The proceeds from the facility are expected to be used for container purchases and related activities. The facility also provides for an option to increase the commitment level by an additional $250 million through an accordion provision which may be exercised by CFL.
“We are very pleased with the establishment of our new facility, which represents an important component of our capital structure,” commented Peter J. Younger, Cronos’ president and chief executive officer. “The successful syndication of this facility also underscores the debt market’s continued receptiveness to Cronos.”
Younger added, “We would like to thank all of our current banks for their continued support of this new facility, as well as all of our new banking relationships for their participation in this important transaction.”
Since 1978, Cronos has specialized in container leasing, design and sales, servicing the needs of more than 480 customers in a wide variety of industries.