TRAC Intermodal postpones opportunistic $485 million secured notes

By Paul A. Harris

Portland, Ore., March 18 – TRAC Intermodal LLC postponed its $485 million offering of second-lien notes due 2021 (Caa1/B-) and will await more favorable market conditions, an informed source said.

Early guidance had the deal coming at around 10%, the source said, adding that there was a deal to be done closer to 11%. Since the transaction was an opportunistic pass at the new issue market, the company ultimately decided to await more favorable conditions to favorably impact its cost of capital.

The deal kicked off with a March 7 investor call, followed by a brief roadshow.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ING, MUFG and Wells Fargo Securities LLC were the joint bookrunners.

The Princeton, N.J.-based intermodal equipment provider and chassis pool manager had planned to use the proceeds to repay debt and fund a dividend.

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