Triton International Prices $312.9MM Fixed Rate Asset-Backed Notes
AUG 18, 2020 - 6:40 am
Triton International priced an offering of $298.2 million fixed rate asset-backed series 2020-1 class A notes at an annual yield of 2.108% and $14.7 million fixed rate asset-backed series 2020-1 class B notes at an annual yield of 3.858%.
“We are pleased to have been able to take advantage of the current attractive financing markets to support the recent jump in container lease demand and investment,” Brian Sondey, CEO of Triton International, said. “We have concluded a substantial number of attractive new long-term lease transactions in the third quarter to date, and container pick-ups under these leases have driven our utilization to approximately 96.1% currently from 94.8% at June 30, 2020. Based on the attractiveness of the current ABS market, we intend to refinance several of our existing ABS notes in the near term to lower our interest costs and to further extend our debt maturities while maintaining the portion of our debt with fixed or hedged interest rates in the range of 80%.”
The notes will be issued by TIF Funding II, a wholly-owned subsidiary of Triton International. The notes will be secured by a pool of containers and related assets owned by Triton International, 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. Triton International will use the net proceeds from the notes offering for general corporate purposes, including to repay outstanding indebtedness. The transaction is expected to close on or about Aug. 26.
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 2.09% per annum and an annual yield of 2.108%. 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 3.82% per annum and an annual yield of 3.858%. The series 2020-1 notes will have an expected final maturity date of Feb. 22, 2028 and a legal final maturity date of Aug. 21, 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.
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