Textainer completes public offering
Bermuda-based Textainer Group Holdings Limited has raised more than $144 million with completion of a public offering of six million depositary shares.
Textainer said each share represents a 1/1,000th interest in a share of its 6.250 per cent Series B Cumulative Redeemable Perpetual Preference Shares, par value $0.01 per share and $25,000 liquidation preference per share (equivalent to $25 per depositary share).
The aggregate public offering price was $150 million before underwriting commissions and estimated expenses.
The 6.250 per cent dividend rate on the Series B Cumulative Redeemable Perpetual Preference Shares is fixed for life and does not reset, the company said, adding that it intends to list the depositary shares on the New York Stock Exchange under the ticker symbol "TGH PRB".
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.
Olivier Ghesquiere, president and CEO of Textainer, said: "We are extremely pleased with the results of this issuance which further strengthens our financial position with attractively priced permanent capital.
"When combined with the existing leverage of our debt facilities, these funds further enhance our ability to finance container investments during this favourable market environment with low-cost financing sources."
Textainer said it intends to use the net proceeds of approximately $144,875,000 after underwriting commissions and estimated expenses from the offering for general corporate purposes, including the purchase of additional intermodal containers, repurchasing outstanding common shares, payment of dividends and repaying or repurchasing outstanding indebtedness.
RBC Capital Markets, LLC, UBS Securities LLC, Keefe, Bruyette & Woods, A Stifel Company and B. Riley Securities, Inc. acted as joint book-running managers for the offering, the company said.
Textainer, in operation since 1979, said it leases containers to approximately 250 customers, including all of the world's leading international shipping lines, and other lessees.
The company 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.