Textainer Group Holdings, a global lessor of intermodal containers, announced that Textainer Marine Containers V Limited (TMCL V), one of the company’s subsidiaries, issued $500 million of fixed rate asset backed notes.

The notes are comprised of $416 million in class A and $84 million in class B notes rated A(sf) and BBB(sf), respectively, by Standard & Poor’s. The notes are scheduled to fully amortize and have a weighted average life of approximately 4.9 years.

The proceeds from the issuance of the notes were primarily used to pay down existing bank facilities, enabling the company to acquire new intermodal shipping containers and related assets. The notes are secured by a pledge of TMCL V’s assets.

RBC Capital Markets, BofA Merrill Lynch, Credit Suisse and Wells Fargo Securities served as the lead bookrunners for the transaction.

“This is our second ABS offering in just two months and follows a significant recent improvement in the container leasing market, coupled with strong capital markets conditions. We were pleased to complete this notes issuance, which represented one of the largest ABS transactions in the history of our industry. This further validates our position as one of the industry’s leading intermodal container lessors and positions us to take advantage of the strong lease-out market,” commented Hilliard C. Terry, III, Textainer’s executive vice president and chief financial officer.