A subsidiary of Textainer Group refinanced its credit agreement to extend its term loan and lower the rate on its $1.2 billion warehouse facility. PNC, Fifth Third and Everbank Commercial Finance have joined the syndicate of lenders.
The facility was extended to August 2020. If not refinanced or renewed following the three-year revolving period, the facility will partially amortize over the following four years and then mature. Pricing on the facility consists of a spread over LIBOR. The spread was reduced from 2.25% to 1.90%.
“The warehouse facility is a key financing vehicle and the refinanced terms improve our funding costs and provide capacity for increased fleet growth in a very strong market,” commented Hilliard C. Terry, III, Textainer executive vice president and chief financial officer.
The existing syndicate of lenders consists of Wells Fargo Bank, ABN AMRO Capital USA, Bank of America, ING Bank Belgium, Royal Bank of Canada, SunTrust and KeyBank. PNC Bank, Fifth Third and Everbank Commercial Finance joined the syndicate as part of the refinance.