Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Textainer Group Holdings Limited (TGH) Receives New Five-Year Credit Agreement

Textainer Group Holdings Limited (TGH), based in Hamilton, Bermuda, is the world’s largest lessor of intermodal containers with a total fleet of more than 1.3 million containers. The company leases containers to more than 300 shipping lines and other lessees, including each of the world’s top 20 container lines. Textainer is also the primary supplier of leased containers to the U.S. military, and is one of the largest sellers of used containers.

The company entered into a $205M, five-year revolving credit agreement with a group of financial institutions. The financial institutions, led by Bank of America, N.A., include Fortis Capital Corp., Wells Fargo Bank, National Association, Credit Industriel et Commercial, Baverische Hypo-und Vereinbank, AG, KeyBank, National Association and Union Bank of California. The proceeds from borrowings under the credit agreement are expected to be used to purchase containers and for general corporate purposes.

The credit agreement represents a restructuring and increase of Textainer’s prior two-year, $75M revolving credit facility. According to John Maccarone, president and chief executive officer, the company is pleased to be able to increase both the size and term of Textainer’s revolver. He added that, given the challenging conditions in the credit markets today, he considers the new credit agreement with both existing and several new banks an indication of their confidence in the company’s model and operating philosophy.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *