Triton Redeems $649MM of Institutional Senior Secured Notes
AUG 2, 2021 - 6:19 am
Triton International’s subsidiaries, Triton Container International Limited and TAL International Container Corporation, intend to redeem approximately $649 million in aggregate principal amount of their outstanding institutional senior secured notes. The notes will be redeemed on Aug. 30 in accordance with the optional redemption provisions in the agreements governing the notes.
Triton Container International Limited Notes
$38.3 million principal amount of 6.6% senior secured notes, Series 2010-A-2 due April 30, 2022
$11.7 million principal amount of 6.65% senior secured notes, Series 2010-A-4 due April 30, 2022
$86.4 million principal amount of 5.15% senior secured notes, Series 2011-A-2 due June 30, 2023
$5 million principal amount of 4.28% senior secured notes, Series 2011-B-1 due Sept. 30, 2021
$87 million principal amount of 4.98% senior secured notes, Series 2011-B-2 due Sept. 30, 2023
$15,714,285 principal amount of 4.28% senior secured notes, Series 2012-A-1 due Oct. 31, 2022
$176 million principal amount of 4.89% senior secured notes, Series 2012-A-2 due Oct. 31, 2024
$17,142,857 principal amount of 3.71% senior secured notes, Series 2014-A-1 due June 30, 2024
$55 million principal amount of 4.26% senior secured notes, Series 2014-A-2 due June 30, 2026
$4.56 million principal amount of 3.23% senior secured notes, Series 2015-A-1 due March 31, 2022
$6,514,286 principal amount of 3.61% senior secured notes, Series 2015-A-2 due March 31, 2025
$53.8 million principal amount of 3.91% senior secured notes, Series 2015-A-3 due March 31, 2027
TAL International Container Corporation Notes
$91.8 million principal amount of 5.41% senior secured notes, due April 30, 2024
The total redemption price of the notes includes the approximately $649 million of aggregate principal amount, together with an estimated make-whole premium of approximately $44 million, to be finalized either one business day prior to the redemption date in the case of Triton Container International Limited or two business days prior to the redemption date in the case of TAL International Container Corporation. The redemption price will also include accrued and unpaid interest to, but excluding, the redemption date.
The notes being redeemed have a weighted average effective interest rate of 4.93%, which is above Triton’s current debt funding costs. Triton expects to recover the vast majority of the make-whole premium for the notes through lower financing costs. Following the redemption, Triton will have no remaining institutional notes outstanding.
“The completion of the prepayment of our institutional notes is a major step in our strategy to transition a large portion of our debt capital structure to unsecured investment grade bonds,” John Burns, CFO of Triton International, said. “We believe this transition will provide us further financing cost and flexibility benefits and add to our already substantial market advantages.”
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