CAI International, Inc. Announces Completion of $348.9 Million Offering of Asset-Backed Notes
March 02 2018 - 9:30AM
Business Wire
CAI International, Inc. (CAI) (NYSE: CAI), announced today that
its indirect wholly-owned subsidiary, CAL Funding III Limited (“CAL
Funding III”), issued on February 28, 2018 $332,000,000 of 3.96%
Series 2018-1 Fixed Rate Asset-Backed Notes, Class A
(“Series 2018-1 Notes Class A”) and $16,900,000 of 4.80%
Series 2018-1 Fixed Rate Asset-Backed Notes, Class B
(“Series 2018-1 Notes Class B”).
The Series 2018-1 Notes Class A and the
Series 2018-1 Notes Class B, are rated “A” and “BBB”,
respectively, by Standard & Poor’s. The Series 2018-1
Notes have a scheduled maturity date of February 25, 2028 and a
legal final maturity date of February 25, 2039.
Victor Garcia, President and Chief Executive Officer of CAI,
commented, “We are very pleased to have concluded another
successful securitized note offering. The offering experienced
strong demand with more than two times oversubscription to our
issuance amount. With the completion of this transaction, our fixed
rate debt now represents approximately 60% of our total outstanding
debt, enabling us to significantly reduce our exposure to the
current rising interest rate environment.”
Mr. Garcia continued, “In general, we believe that a rising
interest rate environment is positive for CAI as it allows us more
flexibility to renew our expiring leases at higher rates and helps
support utilization by making existing in-fleet equipment less
expensive to our customers than new equipment that is priced with
an embedded higher interest rate. The transaction will have minimal
effect on CAI’s first quarter interest expense.”
Additional information on CAI's results, the state of the
industry, as well as its view of the effect of higher interest
rates on its business, is available in a presentation posted today
on the "Investors" section of CAI's
website, www.capps.com.
About CAI International, Inc.
CAI is one of the world’s leading transportation finance and
logistics companies. As of December 31, 2017, CAI operated a
worldwide fleet of approximately 1.3 million CEUs of containers,
and owned a fleet of 7,172 railcars that it leases within North
America. CAI operates through 23 offices located in 14 countries
including the United States.
Forward-Looking Statements
This press release contains forward-looking statements regarding
future events and the future performance of CAI, including but not
limited to, CAI’s expectations regarding the securitized note
offering. These statements and others herein are forward-looking
statements within the meaning of the safe harbor provisions of
Section 21E of the Securities Exchange Act of 1934 and involve
risks and uncertainties that could cause actual results of
operations and other performance measures to differ materially from
current expectations. CAI refers you to the documents that it has
filed with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2017,
its Quarterly Reports on Form 10-Q and its Current Reports on Form
8-K. These documents contain important factors that could cause
actual results to differ from current expectations and from
forward-looking statements contained in this press release.
Furthermore, CAI is under no obligation to (and expressly disclaims
any such obligation to) update or alter any of the forward-looking
statements contained in this press release whether as a result of
new information, future events or otherwise, unless required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180302005114/en/
CAI International, Inc.Tim Page, 415-788-0100Chief
Financial Officertpage@capps.com
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