Log In

Reset Password

Textainer subsidiary optimises financing

A wholly-owned subsidiary of Bermuda-headquartered Textainer Group Holdings Ltd has redeemed approximately $208 million in aggregate principal outstanding of senior secured term loans with an average interest rate of 4.30 per cent and an original scheduled maturity in February 2025.

The early redemption was made by Textainer Marine Containers VI Limited.

Textainer is one of the world’s largest lessors of intermodal freight containers with approximately 4.1 million 20-foot equivalent units in its owned and managed fleet.

In accordance with the early redemption provisions of the term loans, Textainer said it made a make-whole payment of approximately $11 million. Additionally, it incurred a write-off of unamortised debt issuance costs of approximately $1 million.

Textainer said the make-whole payment and write-off will be recognised in its third quarter earnings, but will be excluded from its third quarter adjusted net income.

The company said it used borrowings under its lower-priced existing debt facilities to pay for the outstanding principal of the term loans and the make-whole payment.

Michael K. Chan, Textainer executive vice president and chief financial officer, said: "The early redemption of these notes will help us further optimise our financing platform.

“Furthermore, we are also able to decrease our future effective interest rate by replacing the $208 million 4.30 per cent term loans with our lower-priced debt facilities. We expect to more than fully recover the make-whole payment of this redemption through future interest savings.”

Textainer, in operation since 1979, leases containers to approximately 250 customers, including all of the world's leading international shipping lines, and other lessees.

Textainer operates via a network of 14 offices and approximately 400 independent depots worldwide. It has a primary listing on the New York Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

Textainer Group Holdings Ltd: wholly-owned subsidiary makes early redemption (File photograph)

You must be Registered or to post comment or to vote.

Published August 23, 2021 at 11:51 am (Updated August 23, 2021 at 11:52 am)

Textainer subsidiary optimises financing

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon