Textainer (TGH) Gains Majority Stake in Bermuda Container Company
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Textainer Group Holdings Limited (TGH) acquired a 50.1% interest in TAP Funding Ltd., a Bermuda company that owns an approximately 99,000 TEU (twenty-foot equivalent unit) fleet of containers currently managed by Textainer for approximately $78 million, including the value of TAP Funding Ltd.’s existing debt that remains outstanding. This fleet contains a well diversified mix of container types, including standard dry freight, refrigerated and specialized dry freight containers. Additionally, the fleet has high utilization and a diversified lessee mix consistent with Textainer’s overall container fleet. Textainer has agreed with TAP Ltd., the other shareholder in TAP Funding Ltd., to continue to invest in new containers for this fleet, in order to both grow the portfolio and maintain the relatively young average age of the containers.
“We have long stated that Textainer’s strategy is to grow our overall fleet and increase the portion which we own. This transaction reflects our continued execution of that strategy,” commented Philip K. Brewer, Textainer President and Chief Executive Officer. “Additionally, this investment is another example of our ability to productively deploy recently raised equity. The TAP Funding Ltd. fleet consists of seasoned income producing assets, the acquisition of which we expect will be immediately accretive to earnings and contribute to long-term growth in shareholder value.”
“In 2012, Textainer acquired more than 230,000 TEU from managed container acquisitions. Textainer has increased the percentage of our owned fleet from 59% at the start of 2012 to 71% including this transaction. We previously announced that 2012 capital expenditures will be at record levels and this transaction ensures that we will significantly exceed that goal.”
“We have long stated that Textainer’s strategy is to grow our overall fleet and increase the portion which we own. This transaction reflects our continued execution of that strategy,” commented Philip K. Brewer, Textainer President and Chief Executive Officer. “Additionally, this investment is another example of our ability to productively deploy recently raised equity. The TAP Funding Ltd. fleet consists of seasoned income producing assets, the acquisition of which we expect will be immediately accretive to earnings and contribute to long-term growth in shareholder value.”
“In 2012, Textainer acquired more than 230,000 TEU from managed container acquisitions. Textainer has increased the percentage of our owned fleet from 59% at the start of 2012 to 71% including this transaction. We previously announced that 2012 capital expenditures will be at record levels and this transaction ensures that we will significantly exceed that goal.”
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