Triton restates for $1.2 billion term loan, $2 billion revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 14 – Triton International Ltd. and wholly owned subsidiaries Triton Container International Ltd. and TAL International Container Corp. entered into an amended and restated $1.2 billion term loan agreement and an amended and restated $2 billion revolver on Thursday.

The term loan amends and restates the company’s $1.2 billion term loan entered on May 27, 2021 with PNC Bank, NA as administrative agent, and the revolver restates the company’s $1.13 billion revolver entered on May 16, 2019 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Lead borrower TAL International Container may request up to four borrowings under the amended term loan during the period ending on Nov. 24 in a total of up to $1.2 billion, with an additional $200 million available under an accordion feature. The revolver has a $500 million accordion feature. Proceeds of each may be used for working capital, to refinance existing indebtedness, to purchase container equipment and for general corporate purposes.

The term loan amortizes on a quarterly basis in an amount equal to 2% of the outstanding principal amount with the remainder due at maturity on May 27, 2026.

The amended revolver matures on Oct. 14, 2026.

Borrowings bear interest at Libor plus a margin ranging from 125 basis points to 162.5 bps, based on Triton’s debt rating from Standard & Poor’s.

The loan parties will be required to maintain a ratio of total debt to consolidated tangible net worth not to exceed 4.0 to 1.0 and a minimum interest coverage ratio of not less than 1.25 to 1.0 under both credit facilities. Under the term loan, Triton Container International and TAL International Container are required to maintain an unencumbered assets coverage ratio of not less than 1.20 to 1.0. Under the revolver, the loan parties must maintain an unencumbered assets coverage ratio of not less than 1.20 to 1.0.

Both credit facilities are unsecured, as amended.

The lessor of intermodal freight containers has headquarters in Hamilton, Bermuda.

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