Triton International Announces Completion of Strategic Transition of Debt Capital Structure
October 14 2021 - 9:09AM
Business Wire
October 14, 2021 – Triton International Limited (NYSE: TRTN)
(“Triton” or the “Company”) today announced the following actions
implementing the planned transition of Triton’s debt capital
structure to primarily unsecured debt:
Bank Credit Facilities
Triton’s subsidiary, Triton Container International Limited
(“TCIL”), has amended and restated its existing revolving credit
facility and $1.2 billion term loan facility so that both
facilities will now be unsecured. In addition, the revolving credit
facility was amended, among other things, to increase the borrowing
limit to $2.0 billion, subject to further increase pursuant to the
terms of the facility, and extend the maturity date to October 14,
2026. The amended facility also includes improved pricing terms
that reduced the applicable borrowing margin to 1.375% over LIBOR
from 1.50% prior to the amendment based on Triton's unsecured debt
rating. The size, maturity date and pricing of the term loan
facility remain unchanged. Both facilities are now guaranteed by
the Company.
Release of Security on TCIL Senior
Notes
Additionally, TCIL’s $2.3 billion of outstanding senior secured
notes (collectively, the “Notes”) will now also be unsecured under
the “collateral fall-away” provisions of the indentures governing
the Notes. The applicable series of Notes are:
- $600,000,000 0.80% Senior Secured Notes due 2023
- $500,000,000 1.150% Senior Secured Notes due 2024
- $600,000,000 2.050% Senior Secured Notes due 2026
- $600,000,000 3.150% Senior Secured Notes due 2031
“We are very pleased to have quickly and efficiently concluded
this capital structure transition,” commented John Burns, Chief
Financial Officer. “We believe these enhancements to our capital
structure were enabled by our market leading position, history of
strong financial performance and solid balance sheet. We expect
this new, more flexible and cost efficient financing structure will
add to our already substantial competitive advantages and further
distance us from our peers.”
The revolving credit facility amendment was led by BofA
Securities, Inc., Citibank, N.A., Fifth Third Bank, National
Association, Mizuho Bank, Ltd., MUFG Bank, Ltd., PNC Bank, National
Association, Royal Bank of Canada, Truist Bank, and Wells Fargo
Securities LLC as Joint Lead Arrangers. Bank of America, N.A. will
serve as the administrative agent. The term loan credit facility
amendment was led by PNC Capital Markets LLC, ING Belgium SA/NV,
MUFG Bank, Ltd., Bank of America, N.A., Truist Securities, Inc., as
Joint Lead Arrangers. PNC Bank, National Association will serve as
the administrative agent. The Company intends to use funds borrowed
under the amended credit facilities to repay amounts owed under
existing facilities and for general corporate purposes.
About Triton International Limited
Triton International Limited is the world’s largest lessor of
intermodal freight containers. With a container fleet of 6.9
million twenty-foot equivalent units ("TEU"), Triton’s global
operations include acquisition, leasing, re-leasing and subsequent
sale of multiple types of intermodal containers and chassis.
Important Cautionary Information Regarding Forward-Looking
Statements
Certain statements in this release, other than purely historical
information, including statements about the Company’s beliefs or
expectations relating to future financing plans and strategies, are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements that
include the words “expect,” “intend,” “plan,” “believe,” “project,”
“anticipate,” “will,” “may,” “would” and similar statements of a
future or forward-looking nature may be used to identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties, many of which are
beyond Triton’s control. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in such statements and, therefore,
you should not place undue reliance on any such statements.
These factors include, without limitation, the impact of
COVID-19 on the Company’s business and financial results; decreases
in the demand for leased containers; decreases in market leasing
rates for containers; difficulties in releasing containers after
their initial fixed-term leases; customers’ decisions to buy rather
than lease containers; dependence on a limited number of customers
and suppliers; customer defaults; decreases in the selling prices
of used containers; extensive competition in the container leasing
industry; difficulties stemming from the international nature of
the Company’s businesses; decreases in demand for international
trade; disruption to the Company’s operations resulting from
political and economic policies of the United States and other
countries, particularly China, including but not limited to, the
impact of trade wars, duties and tariffs; disruption to the
Company’s operations from failure of, or attacks on, the Company’s
information technology systems; disruption to the Company’s
operations as a result of natural disasters; compliance with laws
and regulations related to economic and trade sanctions, security,
anti-terrorism, environmental protection and corruption; ability to
obtain sufficient capital to support growth; restrictions imposed
by the terms of the Company’s debt agreements; the availability and
cost of capital; changes in the tax laws in Bermuda, the United
States and other countries; and other risks and uncertainties,
including those risk factors set forth in the section entitled
“Risk Factors” in our Form 10-K filed with the SEC on February 16,
2021. Any forward-looking statements made herein are qualified in
their entirety by these cautionary statements. Except to the extent
required by applicable law, we undertake no obligation to update
publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211014005693/en/
Triton International Limited Andrew Greenberg, 914-697-2900
Senior Vice President Finance & Investor Relations
Triton (NYSE:TRTN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Triton (NYSE:TRTN)
Historical Stock Chart
From Jul 2023 to Jul 2024