CAI International, a transportation finance and logistic company, entered into a new $100 million term line of credit on rail car assets from a syndicate of banks.

The facility provides for up to $100 million of financing of railcars at a 100% advance rate on the net book value of the assets pledged. Upon being drawn, the facility has a term of five years. At closing, $50 million of the facility was drawn at a fixed interest rate of 3.63%. The facility amortizes monthly to a final maturity representing 72% of the initial drawn amount.

“We are pleased to have received such strong credit support from our bank lenders on this facility. The facility is an attractive financing with a 100% advance rate on the value of our assets at a fixed interest rate,” said Victor Garcia, president and CEO of CAI. “Both this transaction, and the $100 million term financing we completed in June 2016 on our container assets, were oversubscribed and we appreciate the strong support we continue to receive from the financing community. We have over $500 million of excess borrowing capacity on our main credit facilities that have four years remaining until maturity. As such, we believe we are well-positioned in terms of our access to capital. However, we will continue to look for attractive opportunities for financing as they present themselves.”

As of June 30, 2016, CAI operated a worldwide fleet of approximately 1.2 million CEUs of containers and owned a fleet of 5,936 railcars that it leases within North America. CAI operates through 24 offices located in 13 countries including the U.S.