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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)

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

Textainer subsidiary optimises financing

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