CAI International expands revolver to $1.1 billion, extends to 2023

By Sarah Lizee

Olympia, Wash., June 28 – CAI International, Inc. and wholly owned subsidiary Container Applications Ltd. amended their third amended and restated revolving credit agreement to extend the maturity to June 26, 2023 from March 15, 2020 and increase the total commitment level to $1.1 billion from $960 million.

The amendment was entered on Tuesday with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility may be increased by an additional $250 million without lender approval.

Pricing was changed to Libor plus a margin that ranges from 125 basis points to 200 bps, and the commitment fee ranges from 20 bps to 35 bps, both based on the total leverage ratio. Interest is initially Libor plus 175 bps and the commitment fee is 30 bps.

Some covenants, restrictions and events of default were also modified to provide for greater flexibility, including an increase in the maximum total leverage ratio to 4 to 1 from 3.75 to 1.

The commitments and composition of the lender syndicate was also revised.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the lead arranger and bookrunner and a syndication agent together with MUFG Union Bank, NA and Wells Fargo Bank, NA. ABN AMRO Capital USA, LLC, Compass Bank, Bank of Montreal, Royal Bank of Canada and PNC Bank, NA are documentation agents.

CAI is a San Francisco-based intermodal marine cargo container leasing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.