SAN FRANCISCO--(BUSINESS WIRE)--CAI International, Inc. (CAI) (NYSE:CAI), one of the world's leading transportation finance and logistics companies, today announced that it has entered into a new $100 million term line of credit on rail car assets from a syndicate of banks. The facility provides for up to $100 million of financing of railcars at a 100% advance rate on the net book value of the assets pledged. Upon being drawn, the facility has a term of five years. At closing, $50 million of the facility was drawn at a fixed interest rate of 3.63%. The facility amortizes monthly to a final maturity representing 72% of the initial drawn amount.
Victor Garcia, President and Chief Executive Officer of CAI, commented, “We are pleased to have received such strong credit support from our bank lenders on this facility. The facility is an attractive financing with a 100% advance rate on the value of our assets at a fixed interest rate. Both this transaction, and the $100 million term financing we completed in June 2016 on our container assets, were oversubscribed and we appreciate the strong support we continue to receive from the financing community. We have over $500 million of excess borrowing capacity on our main credit facilities that have 4 years remaining until maturity. As such, we believe we are well-positioned in terms of our access to capital. However, we will continue to look for attractive opportunities for financing as they present themselves.”
About CAI International, Inc.
CAI is one of the world's leading transportation finance and logistics companies. As of June 30, 2016, CAI operated a worldwide fleet of approximately 1.2 million CEUs of containers, and owned a fleet of 5,936 railcars that it leases within North America. CAI operates through 24 offices located in 13 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, the statements regarding management's view on lender support, the need for future financing and management's outlook for CAI's performance. 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 including, but not limited to, utilization rates, expected economic conditions, expected growth of international trade, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, container prices, lease rates, increased competition, volatility in exchange rates, growth in world trade and world container trade, and potential to sell CAI's securities to the public and others.
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, 2015, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. These documents contain additional 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.
