CAI International unit enters $400 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – CAI International, Inc. wholly owned subsidiary CAI MUFG LLC entered into a credit agreement on Sept. 29 that provides for a $400 million revolver with MUFG Bank, Ltd. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement is scheduled to mature in March 2024.

Borrowings will bear interest at a base rate plus a margin of 150 basis points until the date of occurrence of a conversion event, which is either the scheduled termination date or the date on which an early amortization event initially occurs. After the conversion date, the margin will jump to 350 bps.

The company may request to increase total commitments to $800 million. At closing, it drew $275 million.

Proceeds may be used to acquire collateral and for general corporate purposes.

CAI is a San Francisco-based intermodal marine cargo container leasing company.

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