Triton International Completes Transition of Debt Capital Structure
OCT 15, 2021 - 6:18 am
Intermodal freight container leasing company Triton International took multiple actions to implement its planned transition to a debt capital structure made up of primarily unsecured debt.
To start, Triton’s subsidiary, Triton Container International Limited (TCIL) amended and restated its existing revolving credit facility and $1.2 billion term loan facility so that both facilities will now be unsecured. In addition, the revolving credit facility was amended, among other things, to increase the borrowing limit to $2 billion, subject to further increases pursuant to the terms of the facility, and extend the maturity date to Oct. 14, 2026. The amended facility also includes improved pricing terms that reduced the applicable borrowing margin to 1.375% over LIBOR from 1.5% prior to the amendment based on Triton’s unsecured debt rating. The size, maturity date and pricing of the term loan facility remain unchanged. Both facilities are now guaranteed by Triton.
Additionally, TCIL’s $2.3 billion of outstanding senior secured notes will now also be unsecured under the “collateral fall-away” provisions of the indentures governing the notes. The applicable series of notes are:
$600 million 0.8% senior secured notes due 2023
$500 million 1.15% senior secured notes due 2024
$600 million 2.05% senior secured notes due 2026
$600 million 3.15% senior secured notes due 2031
“We are very pleased to have quickly and efficiently concluded this capital structure transition,” John Burns, CFO of Triton International, said. “We believe these enhancements to our capital structure were enabled by our market leading position, history of strong financial performance and solid balance sheet. We expect this new, more flexible and cost-efficient financing structure will add to our already substantial competitive advantages and further distance us from our peers.”
BofA Securities, Citibank, Fifth Third Bank, Mizuho Bank, MUFG Bank, PNC Bank, Royal Bank of Canada, Truist Bank, and Wells Fargo Securities led the revolving credit facility amendment as joint lead arrangers. Bank of America will serve as the administrative agent. PNC Capital Markets, ING Belgium, MUFG Bank, Bank of America and Truist Securities led the term loan credit facility amendment as joint lead arrangers. PNC Bank will serve as the administrative agent.
Triton intends to use funds borrowed under the amended credit facilities to repay amounts owed under existing facilities and for general corporate purposes.
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