CAI International gets expanded $250 million five-year revolving loans

By Susanna Moon

Chicago, July 31 – CAI International Inc. obtained an amended $250 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

CAI International and CAI Rail Inc., a wholly owned subsidiary, entered into an amended credit agreement on July 25 with MUFG Union Bank, NA as administrative agent, lead arranger and bookrunner.

ING Bank, branch of ING-Diba AG is the syndication agent, and Huntington National Bank is the documentation agent.

The revolver provides up to $250 million for the acquisition of railcars by CAI Rail, which is secured by all of the assets of CAI Rail and guaranteed by the company.

Interest on the loans was reduced to Libor plus 175 basis points, with a spread of 100 bps to 200 bps based on the ratio of consolidated funded Debt to consolidated tangible net worth.

In addition, the agreement lifts the facility commitment to $250 million from $85 million, with the option to upsize the facility to up to $325 million, and revises covenants and restrictions to provide CAI Rail with additional flexibility, the company said.

The amended agreement also extends the maturity date to July 25, 2019.

The material terms of the agreement remain substantially the same as the previous facility.

CAI is a San Francisco-based company involved in the intermodal marine cargo container leasing business.

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