Cronos Holding Plans Further Fleet Explansion
Bermuda-based Cronos Holding Company Ltd. announced that its indirect wholly owned subsidiary, Cronos Containers Program I Ltd. successfully completed an offering of $300 million of Series 2013-1 Asset Backed Notes.
The Series 2013-1 Notes were issued with a fixed 3.08% coupon per annum and an effective annual yield of 3.10 percent. CP1 will use the net proceeds from the Series 2013-1 Notes for container purchases and related business purposes.
“We are pleased with the response to our latest asset backed note issuance,” commented Peter J. Younger, Cronos’ president and Chief Executive Officer. “The ABS market continues to be very receptive to Cronos. We have now raised over $1 billion in this market since our initial transaction in November, 2011. We will use the additional capital from the Series 2013-1 Notes to implement our plans for further fleet expansion.”
Mr. Younger added, “We would like to thank all of our existing investors for their continued support, as well as our eleven new investors, for their participation in this transaction. We would also like to thank Deutsche Bank Securities, Wells Fargo Securities and Credit Suisse; co-managers ABN AMRO, SunTrust Robinson Humphrey and KeyBanc Capital Markets; and financial advisors ING Bank N.V. and Everbank Commercial Finance for their roles in this transaction.”
The Series 2013-1 Notes were offered within the United States only to qualified institutional investors pursuant to Rule 144A under the Securities Act of 1933, as amended and to persons outside the United States in compliance with Regulation S under the Securities Act. The Series 2013-1 Notes have not been registered under the Securities Act or any state securities law, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
Founded in 1978 and based in Bermuda, Cronos is one of the largest and most diversified container leasing companies in world, based upon fleet size by cost-equivalent unit.
