Textainer Marine Containers VII Limited, a subsidiary of Textainer Group Holdings, a global lessor of intermodal containers, issued $350 million in fixed rate asset backed notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and to non-U.S. persons in accordance with Regulation S promulgated under the Act.

The motes comprise of $329 million in Class A and $21 million in Class B notes rated A(sf) and BBB(sf), respectively, by Standard & Poor’s. The notes have a weighted average life of approximately five years and are secured by a pledge of TMCL VII’s intermodal shipping container assets.

Proceeds from the issuance were used to pay down certain short-term debt.

“We are pleased with the high level of investor interest in the TMCL VII 2019-1 issuance, which allowed us to upsize to $350 million with favorable terms and conditions,” commented Michael K. Chan, Textainer executive vice president and chief financial officer. “This transaction further enhances Textainer’s financial platform with an impactful and cost-effective financing to support additional container investments as we remain focused on driving disciplined growth and profitability.”