CAI Expands Credit Facility; Q2/17 Earnings Expected to Double



CAI International, a transportation finance and logistics company, expanded its revolving credit facility and provided a financial update.

CAI has reached agreement with the lenders of its third amended and restated revolving credit agreement to increase the total loan commitment from $775 million to $960 million. Other than the increase in the loan commitment, all other terms of the facility remain unchanged. This increase provides financing for both existing container commitments and additional investment.

The following highlights were excerpted from the news release:

  • CAI estimates that its net income for Q2/17 will be between $10.7 million and $11.3 million. This represents an increase of more than 100% compared to its net income in Q1/17 of $5.3 million, primarily as a result of a combination of revenue from new investment, higher utilization, increased rental rates on expiring contracts and gains on sale of equipment.
  • During the year to date, CAI has invested approximately $370 million in new containers, of which $105 million is expected to be delivered in the second quarter and $202 million in Q3/17.
  • Virtually all of the equipment expected to be delivered in the second and third quarters is under committed leases with an average lease term in excess of eight years.
  • Utilization of CAI’s owned container fleet is currently 97.7%, 1.2 percentage points higher than at the end of Q1/17. CAI expects utilization to be above 98% during Q3/17.
  • Based on the level of committed leases on new investment, high utilization and continued favorable container market conditions, CAI expects further improvement in operating results throughout 2017.
  • CAI has committed leases for 185 newly manufactured railcars that it expects to be on lease by the end of Q4/17.


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