Cronos to Issue $200 Million 144A Notes
Cronos Announces the Issuance of $200 Million of “A” Rated Series 2011-1 Asset Backed Notes
HAMILTON, Bermuda, Dec 07, 2011 (BUSINESS WIRE) — Cronos Holding Company Limited (“Cronos”) announced today that its indirect wholly owned subsidiary, Cronos Containers Program I Ltd. (“CP1”), successfully completed an offering of $200 million of Series 2011-1 Asset Backed Notes (the “Series 2011-1 Notes”). The Series 2011-1 Notes were rated “A” by Standard & Poor’s and comprise both fixed and floating rate notes. The fixed rate notes, amounting to $170 million of note principal, have an interest rate of 4.94%. The floating rate notes, amounting to $30 million of note principal, have an interest rate indexed to one-month LIBOR. CP1 will use the net proceeds from the Series 2011-1 Notes for container purchases and related business purposes.
“We are very pleased with the institutional investor community’s positive response to Cronos’ first issuance of asset backed notes,” commented Peter J. Younger, Cronos’ President and Chief Executive Officer. “We believe that the successful issuance of the Series 2011-1 Notes represents institutional investor acknowledgement of Cronos’ solid position in the container leasing industry and the quality of its diverse container fleet. Consistent with Cronos’ plans, this transaction strengthens the Company’s liquidity, positions it for continued fleet growth and diversifies its debt funding sources.”
Mr. Younger added, “We would like to thank Credit Suisse, BNP Paribas, Deutsche Bank Securities, and co-managers ING Bank, ABN AMRO Bank, DVB Capital Markets, and KeyBanc Capital Markets. We would also like to thank the institutional investors who participated in this transaction, including those investing for the first time in this asset class.”
The Series 2011-1 Notes were offered within the United States only to qualified institutional investors pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to persons outside the United States in compliance with Regulation S under the Securities Act. The Series 2011-1 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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.
About Cronos Holding Company Limited
Cronos is one of the largest container leasing companies in world, based upon fleet size by cost-equivalent unit. Since 1978, Cronos has specialized in container leasing, design, and sales, servicing the needs of more than 400 customers in a wide variety of industries. With its scalable global operating and financial infrastructure, including over 100 employees and dedicated agents, and a network of 19 offices in 17 countries, Cronos offers one of the world’s largest and most diversified container fleets together with one of the industry’s most advanced IT and operations platforms. www.cronos.com
SOURCE: Cronos Holding Company Limited