Container leasing company Textainer Group Holdings (TGH) has announced a new offering of fixed rate preferred stock.
TGH is new to the preferred stock world and certainly due diligence is in order. TGH has been around since 1978 and the company is one of the largest lessor’s of shipping containers with 3.8 million twenty equivalent foot units in the fleet.
Revenue last year was about $600 million and like CAI International (CAI) which is a container lessor, they have plenty of debt–around $3.7 billion.
The preliminary prospectus can be read here.
The companies most recent earnings release can be found here.
Schwab is sucky on this one- an order can be set-up until Review is hit- then it says it is not a valid symbol, and says to call. It also has an ADR fee notice- which is prob why you have to call- grr.
@bob-in-de……
I saw that you listed the dividends as QDI or ROC as the case may be,
I regard your postings highly & I just wanted to make sure that no K-1 forms will be forthcoming. I have bought into a few companies in the past that, for all intents & purposes, one would be led to believe they were 1099DIVs, yet at tax time—that was not so. Thanks for your or any other poster for your assistance.
Lurker – the company will NOT issue a K-1. In form, it’s a Bermudian corporation, not a MLP or LP, so that means a 1099.
Fidelity wants $50 foreign stock fee. Might take a nibble in my TDA acct if it drops below par.
C.Malcolm–Fidelity is always that way–I just go to my eTrade account for these.
Book it Dano, the finalized sheet… $150 million plus the greenshoe.
https://www.sec.gov/Archives/edgar/data/0001413159/000119312521108113/d138226dfwp.htm
Grid – are you looking to buy this Textainer Group Preferred and do you know if a K-1 will be issued? After reading the company’s website, this appears to be a 1099 preferred dividend payment.
Also – I notice you did not include LXP+C in your “top 5 holdings” list. This was previously one of your largest positions? Did you get out of it?
Personally, I have been selling a bit at $58+ but still retain a core holding. Thanks!
No K-1, no withholding, no tax (for some).
Rob—prospectus states it is a qualified dividend–it is 1099. But Fidelity will charge you an extra $50 on thge trade–foreign company.
I am in for a modest position–hoping for a 2% flip only.
Hmmmm…..not really a fan of investing in foreign companies…..extra paperwork at tax time
Lemme see ….. Bermuda has no tax, so no withholding and no foreign tax paid or credit to worry about. Not passive income, so no work there. Just 7% qualified dividend reported on a 1099. For some, the tax rate on that dividend will be zero.
Where is the extra work here?
Textainer is a Bermudian Corp. Dividends will be QDI to the extent paid out of income and ROC if not. Plenty of income coverage right now.
No tax withholding provided pay agent/brokerage gets it right.
A bit of quirkiness that I see but it will get a close look from me.
Does this mean it’s better held in a taxable or ira account? Thanks!
PROVIDED there is no tax withholding (brokers don’t always get it right) this would be fine in a non taxable account. In a non taxable account you are “wasting” the QDI status but that would not stop me.
Also fine in taxable.
OTC Ticker: TGHLF
TEXTAINER GROUP HLDGS LTD DEP SHS REPSTG 1/1000TH PERP PREF SHS SER A Depositary Shares
To give us an indication of the kind of market we’re looking at, the price of TGH common has more than tripled since July 2020. This for a business that, according to FINVIZ, had sales of about 600 mill and income of only 73 mill. BTW, the debt/equity ratio is 3.27. I like the tasty coupon, but can’t see myself holding this.
Those are backward looking sales and income numbers. The value of their shipping containers has skyrocketed as there is a global shortage. Containers are a fungible commodity. The price of a newbuild 20′ container is up 50% since last year. Of course, prices could also come crashing back down.
Artemisa–long term–through various economic cycles I would not want to own any of them. But given the current environment I may take a shorter term position. Like CAI I think they will be able to perform with a decent macro economy with these low interest rates. A recession–that would be a different story.
https://investor.textainer.com/news-releases/news-release-details/textainer-announces-pricing-651-million-asset-backed-financing
TGH not TXT 🙂
Yes, the common stock symbol appears to be TGH. I am told the price indication is 7.0% to 7.125%. Anybody have any thoughts?
af–I am tempted to take an initial position–long term I am not a holder, but in the current environment it just might be ok.
Was told it was priced at 7.00% and the reset was 6.134% above 5 year Treasury. It was not all you can eat, but allocations were generous.
Got it mcg