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StonePeak Buying Textainer

Asset manager Stonepeak is buying shipping container leasing company Textainer (TGH) for $7.4 billion.

TGH has 2 outstanding preferred issues which can be seen here. The press releases indicates the preferreds will be redeemed–although Stonepeak purchased Teekay LNG and did not redeem those preferreds. I have not reviewed the original prospectus nor merger documents.

The press release is here.

4 thoughts on “StonePeak Buying Textainer”

  1. Pardon for the ignorance, but does not specifically stating that they will redeem the preferred shares automatically legally bind them to doing that?

    And if they do not litigation could arise?

    1. I was up bright and early to try to snatch up TGH-B on the cheap. Sadly everyone and their dog knew of the news as well. At 24 bucks per share there is not enough meat left on the bone for me to get involved. I was hoping quite a bit lower.

      The release clearly stated they would be redeemed as the change of control in the prospectus is pretty clear. You have the right to convert to common which must be bought out to go fully private. My worry is if the whole thing falls apart for some reason. An easy gain can turn into an easy loss.

    2. If they don’t redeem them for $25/share they have to allow the shareholders to convert them to common shares. The conversion would be 1.6728 common shares per preferred share so they aren’t going to let that happen. $49 x $1.6728 = $81.83 per share. That is the way I read the prospectus anyway.

      1. They won’t be offering conversion because it’s going to be a privately held company, therefore not wanting shares outstanding to be in public hands.. imho

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