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Textainer Marine Containers to redeem $662 million asset-backed notes
By Angela McDaniels
Tacoma, Wash., May 1 - Textainer Group Holdings Ltd. said Textainer Marine Containers Ltd. has called for full redemption its three outstanding series of asset-backed term notes. The aggregate unpaid principal of the notes is $662 million.
Textainer Marine Containers is a subsidiary of Textainer Ltd., which is a subsidiary of Textainer Group, according to a company news release.
The redemption will occur at par on May 15.
The redemption will be funded with proceeds from a new $500 million five-year term loan, Textainer Ltd.'s working capital and borrowings from other debt facilities.
"This new term loan and redemption of the [Textainer Marine Containers] notes will lower Textainer's funding costs and free up cash for additional container investments," Hilliard C. Terry III, Textainer executive vice president and chief financial officer, said in the news release.
"The closing of these transactions mark the completion of a multi-year plan to restructure the company's financing facilities which included establishing a new series allocation trust, creating a financing facility for older containers and terminating [Textainer Marine Containers], our oldest and least flexible financing entity."
Textainer is a lessor of intermodal containers based on fleet size. The company is based in Hamilton, Bermuda.
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