Triton Announces Repurchase of $ 821 Million Institutional Senior Secured Notes
HAMILTON, Bermuda – (COMMERCIAL THREAD) – (June 2, 2021) Triton International Limited (NYSE: TRTN) today announced that its subsidiary, Triton Container International Limited (“TCIL”), has notified its intention to repurchase approximately $ 821 million in total principal from its outstanding institutional senior secured notes (the “Notes”). The Notes will be redeemed on June 28, 2021 (the “Redemption Date”) in accordance with the optional redemption provisions of the agreement governing the Notes. TCIL intends to use borrowings under its term loan facility to fund the repurchase.
The Securities to be reimbursed are as follows:
$ 91,428,570 in principal amount of the 3.71% Senior Secured Notes, Series 2014-A-1, due June 30, 2024 (CUSIP # G8967 # AP8);
$ 220,000,000 principal amount of the 4.26% Senior Secured Notes, Series 2014-A-2, due June 30, 2026 (CUSIP # G8967 # AQ6);
Principal amount of $ 18,240,000 of the 3.23% Senior Secured Notes, Series 2015-A-1, due March 31, 2022 (CUSIP # G8967 # AR4);
$ 26,057,143 in principal amount of 3.61% Senior Secured Notes, Series 2015-A-2, due March 31, 2025 (CUSIP # G8967 # AS2);
Principal amount of $ 215,200,000 of the 3.91% Senior Secured Notes, Series 2015-A-3, due March 31, 2027 (CUSIP # G8967 # ATO);
$ 105,000,000 principal amount of 4.35% Senior Secured Notes, Series 2017-A-1, due June 30, 2027 (CUSIP # G8967 # AU7); and
Principal amount of $ 145,000,000 of 4.64% Senior Secured Notes, Series 2017-A-2, due June 30, 2029 (CUSIP # G8967 # AV5).
The total repurchase price of the Notes includes approximately $ 821 million of total principal, plus an estimated clearing 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 will also include accrued and unpaid interest up to, but excluding, the redemption date.
The repaid notes have a weighted average effective interest rate of 4.14%, which is significantly higher than Triton’s current debt financing costs. Triton expects to recoup the vast majority of the catch-up bonus from the tickets through lower financing costs. Following the repurchase, TCIL will have approximately $ 560 million of institutional notes remaining in circulation, with an average effective interest rate of 4.85%.
“The early redemption of these notes, along with our recent issues of high quality senior secured bonds with overriding collateral clauses, are key elements of our strategy to shift much of our capital structure from ‘borrowing from quality unsecured bonds,’ said John Burns, CFO. We believe this transition will give us access to a larger pool of debt capital at tighter spreads, further differentiating Triton from our peers. ”
This press release is for informational purposes only and does not constitute a notice of redemption, nor an offer to purchase or purchase any tickets or any other security of TCIL.
Important Cautionary Information Regarding Forward-Looking Statements
Certain statements contained in this press release, other than purely historical information, including statements regarding the timing and total redemption prices of the Notes and the Company’s capital strategy, are “forward-looking statements” within the meaning of Private Law. 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 information technology 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; 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.
About Triton International Limited
Triton International Limited is the world’s largest lessor of intermodal freight containers. Triton operates a container fleet of over six million twenty-foot equivalent units, and its global operations include the acquisition, rental, release and subsequent sale of several types of intermodal containers and chassis.