Textainer Group Holdings, a lessor of intermodal containers, announced that Textainer Marine Containers II, an indirect, wholly-owned subsidiary of the company, closed a refinancing to extend the term and lower the interest rate on its $1.2 billion warehouse financing facility used to acquire intermodal containers.

The facility incorporates a three-year revolving period that was extended to August 2020. If not refinanced or renewed following the three-year revolving period, the facility will partially amortize over the following four years and then mature. Pricing on the facility consists of a spread over LIBOR. The spread was reduced from 2.25% to 1.90%.

“The warehouse facility is a key financing vehicle and the refinanced terms improve our funding costs and provide capacity for increased fleet growth in a very strong market,” commented Hilliard C. Terry, III, Textainer executive vice president and chief financial officer.

The existing syndicate of lenders, consisting of Wells Fargo Bank, ABN AMRO Capital USA, Bank of America, ING Bank Belgium NV/SA, Royal Bank of Canada, SunTrust and KeyBank, is joined by the addition of PNC Bank, Fifth Third and Everbank Commercial Finance.

“We value the partnership and support of our new and long term banking relationships,” concluded Terry.