Textainer Group Holdings Limited, the world’s largest lessor of intermodal containers based on fleet size, announced that Textainer Limited, which is a wholly owned subsidiary of the company, entered into a $205 million, five-year revolving credit agreement with a group of financial institutions.
These institutions are led by Bank of America N.A. and include Fortis Capital Corp., Wells Fargo Bank, National Association, Credit Industriel et Commercial, Bayerische Hypo- und Vereinsbank AG, KeyBank National Association, and Union Bank of California N.A. The interest rate under the credit agreement is a spread over LIBOR (the London Interbank Offered Rates), which varies based on the leverage of Textainer Ltd. At the closing, the initial interest rate will be LIBOR + 1.00%. Proceeds from borrowings under the credit agreement are expected to be used to purchase containers and for general corporate purposes.
This credit agreement represents a restructuring and increase of Textainer Ltd.’s prior two-year, $75 million revolving credit facility.
"We are extremely pleased to have been able to increase both the size and the term of Textainer Limited’s revolver," said John Maccarone, the company’s president and chief executive officer. "Given the challenging conditions in the credit markets today, we consider this new credit agreement with both our existing and several new banks to be a clear indication of their confidence in our business model and operating philosophy."