TAL to seek up to $175 million revolver in connection with IPO

By Sara Rosenberg

New York, June 30 - TAL International Group Inc. plans on getting an up to $175 million senior secured revolving credit facility in connection with its initial public offering of common stock, according to an S-1 filed with the Securities and Exchange Commission Thursday.

Security for revolver borrowings will be a first priority lien on substantially all of the borrowers' assets, other than real property interests and certain other specified assets.

Financial covenants are expected to include a consolidated leverage ratio of 4.75 to 1.00 or less following the consummation of the IPO, and a consolidated EBIT to consolidated cash interest expense ratio of at least 1.00 to 1.00 prior to the consummation of the IPO and at least 1.10 to 1.00 following the IPO.

The company also plans on getting a new asset securitization facility.

Proceeds from the revolver, the asset securitization facility and the IPO will be used to repay the entire outstanding principal amount under the company's existing $875 million senior secured revolving credit facility and a portion of the outstanding principal amount under its existing $275 million senior unsecured credit agreement.

TAL is a Purchase, N.Y., lessor of intermodal freight containers.

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