CAI International Sells New Fixed-to-Floating Issue

Container leasing company CAI International (NYSE:CAI) is selling a new fixed-to-floating rate preferred.  Details have not yet been released.

The company has had reasonable financials for the last couple quarters and likely this will continue as long as global economic conditions remain good–BUT if the economy softens–WATCH OUT.  The company has over $2 billion in debt and this spells disaster in a recession–but for now ‘party on’.

The preliminary prospectus for the new issue can be found here.

The company sold a 8.50% fixed-to-floating rate preferred in March and this is how it is trading.

3 thoughts on “CAI International Sells New Fixed-to-Floating Issue”

  1. Hmm. Highly skeptical of companies that have multiple offerings with a given year for no apparent reason or commitment to reduce costs. Why? taking on committed debt/expenses for 5 years “suggests to me” you have a plan. Multiple in a year suggests to me to more opportunist. As Tim says “party on”

    So, does that include Bank Of America? No, Bank of America is using their offerings to pay down debt/expenses. A 2nd offering this year to pay down retire more expensive debt/expenses is smart particularly since the 2nd offering was slightly lower coupon then the first.

    To me, this is a trade only, if I invest at all (doubtful)

  2. CAI-A dropped quickly to par first thing this morning. Nervous nellies kneejerk reactions…

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