A subsidiary of Bermudian-based shipping container company Triton International Limited has entered into a new $1 billion term loan arrangement.

The proceeds from the loan facility, which matures in November 2023, will be used by Triton Container International Limited to refinance existing term loan, reduce borrowings on existing revolving credit facilities and for general corporate purposes.

Brian Sondey, chief executive officer of Triton International, said: “We are very pleased to have concluded this important financing. This term loan allows us to reduce our interest expense, extend the duration of our debt and continues to position us to take advantage of attractive investment opportunities.”

Triton International Limited is the world’s largest lessor of intermodal freight containers, It has a container fleet of more than six million twenty-foot equivalent units. Its global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.

Pricing of the new loan facility consists of a margin over Libor — the average interbank interest rate in the London money market — that varies based on the rating of Triton’s senior secured debt. The company’s senior debt is currently rated BBB- by Standard & Poor’s resulting in an initial margin of 1.5 per cent.

The loan facility was led by PNC Capital Markets LLC, ING Belgium SA/NV and MUFG Bank Ltd, as joint lead arrangers.