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CAI Rail enters restated $500 million five-year revolving facility
By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – CAI Rail, Inc. entered into an amended and restated $500 million five-year revolving credit facility on Oct. 22, according to an 8-K filed with the Securities and Exchange Commission.
The restated agreement reduces the company’s interest costs by 25 basis points.
Borrowings now bear interest at Libor plus a margin ranging from 125 bps to 200 bps, depending on the leverage ratio. The commitment fee ranges from 25 bps to 35 bps.
The $500 million commitment doubles the previous $250 million commitment. There is an accordion feature allowing the company to increase total commitments to up to $700 million.
MUFG Union Bank, NA and Bank of America, NA acted as joint lead arrangers and joint bookrunners. MUFG also acted as administrative agent; Bank of America as syndication agent; and ING Bank and the Huntington National Bank as co-documentation agents.
Proceeds are to be used for the acquisition of railcars.
The facility matures on Oct. 22, 2020.
CAI Rail is a subsidiary of CAI International, Inc., a San Francisco-based intermodal marine cargo container leasing company.
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