HAMILTON, Bermuda – (COMMERCIAL THREAD) – October 14, 2021 – Triton International Limited (NYSE: TRTN) (âTritonâ or the âCompanyâ) today announced the following actions implementing the planned transition of Triton’s debt capital structure to mainly unsecured debt:
Bank credit facilities
Triton’s subsidiary, Triton Container International Limited (âTCILâ), amended and updated its existing revolving credit facility and its $ 1.2 billion term loan facility so that the two facilities will no longer be more guarantees. In addition, the revolving credit facility was amended, among other things, to increase the borrowing limit to $ 2.0 billion, subject to further increase in accordance with the terms of the facility, and to extend the date of termination. maturity October 14, 2026. The amended facility also included improved pricing conditions which reduced the applicable borrowing margin to 1.375% against LIBOR from 1.50% prior to the amendment based on the credit rating. the unsecured debt of Triton. The size, maturity date and price of the term loan facility remain unchanged. Both installations are now guaranteed by the Company.
Security release on TCIL senior ratings
In addition, TCIL’s outstanding $ 2.3 billion of senior secured notes (collectively, the âNotesâ) will now also be unsecured under the âcollateralâ provisions of the trust indentures governing the Notes. . The applicable ticket series are:
$ 600,000,000 0.80% Senior Secured Bonds due 2023
$ 500,000,000 1.150% Senior Secured Notes due 2024
$ 600,000,000 Senior Secured 2.050% Notes due 2026
$ 600,000,000 3.150% Senior Secured Notes due 2031
âWe are very pleased to have completed this transition in capital structure quickly and efficiently,â commented John Burns, Chief Financial Officer. âWe believe that these improvements to our capital structure have been made possible by our leadership position in the market, our history of strong financial performance and our strong balance sheet. We anticipate that this new, more flexible and cost-effective financing structure will add to our already substantial competitive advantages and further distance us from our peers. ”
The revolving credit facility amendment was led by BofA Securities, Inc., Citibank, NA, Fifth Third Bank, National Association, Mizuho Bank, Ltd., MUFG Bank, Ltd., PNC Bank, National Association, Royal Bank of Canada, Truist Bank, and Wells Fargo Securities LLC as Joint Principal Arrangers. Bank of America, NA will serve as administrative agent. The modification of the Term Credit Facility was led by PNC Capital Markets LLC, ING Belgium SA / NV, MUFG Bank, Ltd., Bank of America, NA, Truist Securities, Inc., as Joint Principal Arrangers. PNC Bank, National Association will serve as administrative agent. The Company intends to use the funds borrowed under the amended credit facilities to repay amounts due under the existing facilities and for general corporate purposes.
About Triton International Limited
Triton International Limited is the world’s largest lessor of intermodal freight containers. With a container fleet of 6.9 million twenty-foot equivalent units (“TEU”), Triton’s global operations include the acquisition, rental, relocation and subsequent sale of several types of containers and intermodal chassis.
Important Cautions Regarding Forward-Looking Statements
Certain statements contained in this press release, other than purely historical information, including statements about the Company’s beliefs or expectations regarding future funding plans and strategies, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform. Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that include the words “expect”, “intend”, “plan”, “believe”, “plan”, “anticipate”, “will”, “could”, “may” and Similar statements of a future or forward-looking nature can be used to identify forward-looking statements. All forward-looking statements deal with matters involving risks and uncertainties, many of which are beyond Triton’s control. Therefore, there are or will be significant factors that could cause actual results to differ materially from those shown in such statements and, therefore, you should not place undue reliance on such statements.
These factors include, but are not limited to, the impact of COVID-19 on the Company’s business and financial results; decreased demand for leased containers; lower market rental rates for containers; difficulties in releasing containers after their initial fixed-term lease; customer decisions to buy rather than lease containers; dependence on a limited number of customers and suppliers; client defaults; lower selling prices for used containers; intense competition in the container rental industry; difficulties linked to the international nature of the Company’s activities; declining demand for international trade; disruption of the Company’s operations resulting from the political and economic policies of the United States and other countries, particularly China, including, but not limited to, the impact of trade wars, tariffs and tariffs; the interruption of the Company’s operations due to a failure or attacks on the Company’s computer systems; disruption of the Company’s operations as a result of natural disasters; compliance with laws and regulations relating to economic and trade sanctions, security, the fight against terrorism, environmental protection and corruption; ability to raise sufficient capital to support growth; restrictions imposed by the terms of the Company’s loan agreements; the availability and cost of capital; changes in tax laws in Bermuda, the United States and other countries; and other risks and uncertainties, including the risk factors set out in the section entitled “Risk Factors” of our Form 10-K filed with the SEC on February 16, 2021. All forward-looking statements made herein are qualified in their terms. fully by these warnings. Except to the extent required by applicable law, we assume no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.