CAI lowers pricing, reduces balance, revises covenants on term loan

By Toni Weeks

San Luis Obispo, Calif., April 3 - CAI International, Inc. entered into a fourth amendment of its term loan agreement with administrative agent, lead arranger and bookrunner ING Bank NV on March 28, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The amendment lowers the interest rate to Libor plus 225 basis points from Libor plus 300 bps and documents a reduction of the outstanding principal balance to $125 million from $249 million, accomplished through the prepayment of about $124 million by subsidiary Container Applications Ltd.

The amendment also further revises some of the covenants to provide CAL with increased financial flexibility.

CAI is a container leasing and management company based in San Francisco.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.