HAMILTON, Bermuda, April 26, 2019 /PRNewswire/ -- Textainer Group Holdings Limited (TGH) ("Textainer"), one of the world's largest lessors of intermodal containers, today announced that Textainer Marine Containers VII Limited ("TMCL VII"), an indirect, wholly-owned subsidiary of the Company, issued $350 million of Fixed Rate Asset Backed Notes (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the "Act") and to non-U.S. persons in accordance with Regulation S promulgated under the Act. The Notes comprise of $329 million in Class A and $21 million in Class B Notes rated A(sf) and BBB(sf), respectively, by Standard & Poor's. The Notes have a weighted average life of approximately five years and are secured by a pledge of TMCL VII's intermodal shipping container assets. Proceeds from the issuance were used to pay down certain short-term debt.
"We are pleased with the high level of investor interest in the TMCL VII 2019-1 issuance, which allowed us to upsize to $350 million with favorable terms and conditions," commented Michael K. Chan, Textainer Executive Vice President and Chief Financial Officer. "This transaction further enhances Textainer's financial platform with an impactful and cost-effective financing to support additional container investments as we remain focused on driving disciplined growth and profitability."
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world's largest lessors of intermodal containers with more than 3 million TEU in our owned and managed fleet. We lease containers to approximately 250 customers, including all of the world's leading international shipping lines, and other lessees. Our fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials. We also lease tank containers through our relationship with Trifleet Leasing and are the primary supplier of containers to the U.S. Military. Textainer is one of the largest and most reliable suppliers of new and used containers. In addition to selling older containers from our lease fleet, we buy older containers from our shipping line customers for trading and resale. We sold an average of almost 140,000 containers per year for the last five years to more than 1,500 customers making us one of the largest sellers of used containers. Textainer operates via a network of 14 offices and approximately 500 independent depots worldwide.