Triton International priced an offering of $595.5 million fixed rate asset-backed Series 2020-1 Class A notes at an annual yield of 2.068% and $38.9 million fixed rate asset-backed Series 2020-1 Class B notes at an annual yield of 3.318%.

Triton will use the net proceeds from the notes offering, together with cash on hand, to repay all of the existing asset-backed notes issued by TAL Advantage V LLC and TAL Advantage VI LLC, which have an outstanding principal balance of $611 million and a weighted average coupon of 3.73%. The transaction is expected to close on or about Sept. 21, 2020.

The notes will be issued by TAL Advantage VII LLC (the issuer), an indirect wholly-owned subsidiary of Triton International. 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, which 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 2.05% per annum and an annual yield of 2.068%. 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 3.29% per annum and an annual yield of 3.318%. The Series 2020-1 notes will have a legal final maturity date of Sept. 20, 2045.

Triton International is a lessor of intermodal freight containers.