Triton to Redeem $821MM of Institutional Senior Secured Notes
JUN 3, 2021 - 6:31 am
Triton International’s subsidiary, Triton Container International Limited, intends to redeem approximately $821 million in aggregate principal amount of its outstanding institutional senior secured notes. The notes will be redeemed on June 28 in accordance with the optional redemption provisions in the agreement governing the notes. Triton Container International Limited intends to use borrowings under its term loan facility to fund the redemption.
The following notes will be redeemed:
$91,428,570 principal amount of 3.71% senior secured notes, Series 2014-A-1, due June 30, 2024
$220 million principal amount of 4.26% senior secured notes, Series 2014-A-2, due June 30, 2026
$18.24 million principal amount of 3.23% senior secured notes, Series 2015-A-1, due March 31, 2022
$26,057,143 principal amount of 3.61% senior secured notes, Series 2015-A-2, due March 31, 2025
$215.2 million principal amount of 3.91% senior secured notes, Series 2015-A-3, due March 31, 2027
$105 million principal amount of 4.35% senior secured notes, Series 2017-A-1, due June 30, 2027
$145 million principal amount of 4.64% senior secured notes, Series 2017-A-2, due June 30, 2029
The total redemption price of the notes includes the approximately $821 million of aggregate principal amount, together with an estimated make-whole premium of approximately $90 million, to be finalized one business day prior to the redemption date in accordance with the agreement governing the notes. The redemption price also will include accrued and unpaid interest to, but excluding, the redemption date.
The notes being redeemed have a weighted average effective interest rate of 4.14%, which is above Triton’s current debt funding costs. Triton expects to recover the majority of the make-whole premium for the notes through lower financing costs. Following the redemption, Triton Container International Limited will have approximately $560 million of remaining institutional notes outstanding, with an average effective interest rate of 4.85%.
“The prepayment of these notes, together with our recent issuances of senior secured investment grade bonds with fall-away collateral provisions, are key components of 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 with access to a deeper pool of debt capital at tighter spreads, further differentiating Triton from our peers.”
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