HAMILTON, Bermuda, Aug. 20, 2021 /PRNewswire/ -- Textainer
Group Holdings Limited (NYSE:TGH; JSE: TXT) ("Textainer", "we", and
"our"), one of the world's largest lessors of intermodal
containers, today announced that Textainer Marine Containers VI
Limited ("TMCL VI"), an indirect, wholly-owned subsidiary of the
Company, has redeemed approximately $208
million in aggregate principal outstanding of senior secured
term loans ("term loans") with an average interest rate of 4.30%
and an original scheduled maturity in February 2025.
In accordance with the early redemption provisions of the term
loans, Textainer made a make-whole payment of approximately
$11 million. Additionally, we
incurred a write-off of unamortized debt issuance costs of
approximately $1 million. The
make-whole payment and write-off will be recognized in our third
quarter earnings, but will be excluded from our third quarter
adjusted net income. Textainer used borrowings under our
lower-priced existing debt facilities to pay for the outstanding
principal of the term loans and the make-whole payment.
"The early redemption of these notes will help us further
optimize our financing platform. Furthermore, we are also able to
decrease our future effective interest rate by replacing the
$208 million 4.30% term loans with
our lower-priced debt facilities. We expect to more than fully
recover the make-whole payment of this redemption through future
interest savings," commented Michael K.
Chan, Textainer Executive Vice President and Chief Financial
Officer.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world's
largest lessors of intermodal containers with approximately 4.1
million TEU in our owned and managed fleet. We lease containers to
approximately 250 customers, including all of the world's leading
international shipping lines, and other lessees. Our fleet consists
of standard dry freight, refrigerated intermodal containers, and
dry freight specials, and we are one of the largest and most
reliable suppliers of new and used containers. Textainer operates
via a network of 14 offices and approximately 400 independent
depots worldwide. Textainer has a primary listing on the New York
Stock Exchange (NYSE: TGH) and a secondary listing on the
Johannesburg Stock Exchange (JSE: TXT).
Important Cautionary Information Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws. Forward-looking statements
include statements that are not statements of historical facts and
include, without limitation, statements regarding: the expected
decrease in our overall effective interest rate and expected
recovery of the make-whole payment. Readers are cautioned
that these forward-looking statements involve risks and
uncertainties, are only predictions and may differ materially from
actual future events or results. For a discussion of some of these
risks and uncertainties, see Item 3 "Key Information— Risk Factors"
in Textainer's Annual Report on Form 20-F filed with the Securities
and Exchange Commission on March 18,
2021 and the risks described in the section entitled "Risk
Factors" in the prospectus supplement related to the offering of
the depositary shares.
Textainer's views, estimates, plans and outlook as described
within this document may change subsequent to the release of this
press release. Textainer is under no obligation to modify or update
any or all of the statements it has made herein despite any
subsequent changes Textainer may make in its views, estimates,
plans or outlook for the future.
Contact Information
Investor Relations
+1 415-658-8333
ir@textainer.com
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SOURCE Textainer Group Holdings Limited
