Triton International priced an offering of $1.3 billion fixed rate asset-backed Series 2020-1 Class A notes at an annual yield of 2.123% and $65.8 million fixed rate asset-backed Series 2020-1 Class B notes at an annual yield of 3.773%.

The net proceeds from the notes offering will be used to repay at par all of the existing asset-backed notes issued by Triton Container Finance VI, which have an outstanding principal balance of $1.2 billion and a weighted average coupon of 3.88%, and for general corporate purposes. The transaction is expected to close on or about Sept. 21.

The notes will be issued by Triton Container Finance VIII, a wholly-owned subsidiary of Triton Container International (issuer). The notes will be secured by a pool of containers and related assets owned by the issuer, which will be the sole obligor on the notes. The notes will not be obligations of or guaranteed by Triton International or any of its other subsidiaries.

The Series 2020-1 Class A notes, which are expected to be rated “A” by Standard & Poor’s, will be issued with a coupon of 2.11% per annum and an annual yield of 2.123%. The Series 2020-1 Class B notes, which are expected to be rated “BBB” by Standard & Poor’s, will be issued with a coupon of 3.74% per annum and an annual yield of 3.773%. The Series 2020-1 notes will have a legal final maturity date of Sept. 20, 2045. The transaction documents contain customary affirmative and negative covenants, financial covenants, representations and warranties, and events of default, which are subject to various exceptions and qualifications.

Triton International is a lessor of intermodal freight containers.