TRAC Intermodal extends revolver to 2020, cuts pricing, expands size

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – Interpool, Inc., doing business as TRAC Intermodal, lowered pricing, extended the maturity and increased to $1.5 billion the maximum total revolving commitments under its existing asset-based credit agreement dated Aug. 2, 2012, according to an 8-K filed with the Securities and Exchange Commission.

Under the Dec. 10 amendment, interest was reduced to Libor plus 200 basis points from Libor plus 225 bps for one year, after which interest will drop to Libor plus 175 bps to 225 bps, depending on average daily availability during the most recently ended fiscal quarter.

The revolver’s maturity was extended to Dec. 10, 2020 from Aug. 9, 2017.

Previously, the maximum total revolving commitment was $1.4 million. The total revolving commitment of the existing lenders is at $1.3 billion.

Also, Bank of America, NA was appointed administrative agent, succeeding JPMorgan Chase Bank, NA.

Additionally, certain financial and negative covenants were relaxed under the amendment, and the definition of “payment conditions” was amended to modify the calculation used to determine the amount of any permitted acquisition, investment, asset sale and restricted payment as well as any debt the company may prepay.

TRAC is a Princeton, N.J.-based provider of marine and domestic chassis.

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