By Lisa Kerner
Charlotte, N.C., Sept. 25 - Textainer Group Holdings Ltd.'s newly established indirect wholly owned asset-owning subsidiary Textainer Marine Containers III Ltd. closed its offering of $300.9 million of series 2013-1 fixed-rate asset-backed notes (/A/).
The notes have a fixed interest rate, payable monthly, of 3.9% per year and were sold at about 99.5% of par value for a bond equivalent yield of 4.05% per annum, according to a company news release.
The fully amortizing notes are payable on a straight-line basis over a scheduled payment term of 10 years, with a maximum term of 25 years.
Bank of America Merrill Lynch, RBC Capital Markets and Wells Fargo Securities are the underwriters.
The notes were sold under Rule 144A and Regulation S of the Securities Act.
The notes are secured by a pledge of Textainer Marine Containers III's assets.
Proceeds will be used by the issuer to acquire shipping containers from Textainer's other asset-owning subsidiaries, Textainer Ltd. and Textainer Marine Containers II Ltd. In addition, these entities are expected to partially repay some outstanding floating-rate debt. The issuer will also use proceeds to fund a restricted cash account, to pay the costs of issuance of the notes and for general corporate purposes.
"This financing establishes a new and more flexible trust structure for future debt issuance," Hilliard C. Terry III, executive vice president and chief financial officer, said in the release.
Textainer is a Hamilton, Bermuda-based lessor of intermodal containers.
| Issuer: | Textainer Marine Containers III Ltd.
|
| Issue: | Series 2013-1 fixed-rate asset-backed notes
|
| Amount: | $300.9 million
|
| Maturity: | Amortizes over 10 years, maximum maturity 25 years
|
| Coupon: | 3.9%
|
| Price: | 99.5
|
| Yield: | 4.05%
|
| Underwriters: | Bank of America Merrill Lynch, RBC Capital Markets, Wells Fargo Securities
|
| Distribution: | Private placement
|
| Rating: | Standard & Poor's: A
|
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