Textainer Completes Early Redemption of $208MM of Senior Secured Term Loans

Textainer Marine Containers VI Limited (TMCL VI), an indirect, wholly-owned subsidiary of Textainer Group, a lessor of intermodal containers, redeemed approximately $208 million in aggregate principal outstanding of senior secured term loans with an average interest rate of 4.3% 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, the company incurred a write-off of unamortized debt issuance costs of approximately $1 million. The make-whole payment and write-off will be recognized in Textainer’s third quarter earnings but will be excluded from its third quarter adjusted net income. Textainer used borrowings under its 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 4.3% 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,” Michael K. Chan, executive vice president and CFO of Textainer, said

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