CAI International Inc. has priced its public offering of 1.6 million of 8.50% series A fixed- to floating-rate cumulative redeemable perpetual preferred shares at $25 per share.
Dividends on the preferred shares will accrue from, and including, the date of original issuance to, but excluding, April 15, 2023, at an annual rate of 8.50%, based on the $25 liquidation preference per year.
On and after April 15, 2023, dividends will accrue at an annual rate equal to the sum of three-month London Interbank Offered Rate and 5.82% of the $25 liquidation preference per share.
The underwriters have been given a 30-day option to buy up to an additional 240,000 shares.
The offering is expected to close on or about March 29.
The company intends to use the net proceeds from the offering primarily to repay debt under one or more of its senior secured revolving credit facilities and for general corporate purposes, which may include share repurchases, investments in containers and other assets, or acquisitions.
B. Riley FBR Inc., Janney Montgomery Scott LLC, Oppenheimer & Co. Inc. and William Blair & Co. LLC are acting as joint book-running managers for the offering. BB&T Capital Markets, Boenning & Scattergood Inc., Huntington Investment Company, Incapital LLC, National Securities Corporation and Wedbush Securities Inc. are acting as co-managers.