Triton International to Offer Preferred

Container owner and lessor Triton International (NYSE:TRTN) is offering a new fixed rate issue of preferred stock. The company is a large company with $10 billion in assets (and also $7 billion in debt).

The company currently has an 1 other current issue of preferred outstanding with a coupon of 8.50% which was sold last March and has traded strongly at over $26/share. The old issue was rated B+ by S&P (junk grade).

The preliminary prospectus is here.

This issue will be cumulative and optionally redeemable in 2024. The permanent ticker will be TRTN-B when it reaches the big board. The issue will trade on the OTC Grey market, but the ticker is not announced yet.

10 thoughts on “Triton International to Offer Preferred”

  1. So how does Triton compare to CAI? After a cursory look, I think I would take CAI-A over these Triton preferreds.

    1. TRTN and CAI both have PE ratios in the low 6s and similar 3x debt to equity ratios, but TRTN has five times the cap size at 2.4B, plus a 6.7% common dividend. Not sure how the business models compare, but Triton seems to have more meat on its bones than CAI.

    1. This is a “foreign security” so some firms will no allow their clients to buy this IPO or charge an extra commission for the privilege of executing the preferred.
      HAMILTON, Bermuda–(BUSINESS WIRE)–
      Triton International Limited (TRTN) (the “Company” or “Triton”) today announced the pricing of an underwritten offering of 5,000,000 8.00% Series B Cumulative Redeemable Perpetual Preference Shares with a liquidation preference of $25.00 per share (the “Series B Preference Shares”) for gross proceeds of $125,000,000. Triton also granted the underwriters a 30-day option to purchase up to an additional 750,000 Series B Preference Shares.

      The Company intends to use the net proceeds from the offering for general corporate purposes, including the purchase of containers, the repurchase of outstanding common shares, the payment of dividends, and the repayment or repurchase of outstanding indebtedness. The offering is expected to close on June 24, 2019, subject to customary closing conditions.

      Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc., a Stifel Company, are acting as joint book-running managers for the offering. The offering is made pursuant to an effective shelf registration statement, previously filed with the Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus supplement and a related prospectus, copies of which may be obtained on the SEC’s website at http://www.sec.gov or by contacting:

  2. This Triton Fixed to float Preferred will be a very large offering. This is because there are 5 lead/co/joint book runners and they all need shares for their accounts retail and institutional:
    Joint Book-Running Managers
    Wells Fargo Securities
    BofA Merrill Lynch
    Morgan Stanley
    UBS Investment Bank
    Keefe, Bruyette & Woods
    The last Triton Preferred A On 3/12/19 was quite small at only 3 million shares, but came at a whopping 8.5%.
    Please please PLEASE do your own deep due diligence before investing and only invest money that you will be able to sleep at night if it blows up (goes down) in the future. Maybe Egan-Jones will rate this one AAA and we can all sleep well at night…
    Basketball star Michael Jordan stated “The minute you get away from the fundamentals – whether it’s proper technique, work ethic, or mental preparation – the bottom can fall out of your game.”
    Nomad

  3. 77% debt to capital and a 5yr chart that looks worrisome… I’ll pass on this one for sure. Too tightly tied to global trade/shipping.

    Triton International (TRTN) is an intermodal container leasing company with the world’s largest container fleet with 6.0 million twenty foot equivalent (TEU) containers. TRTN has a significant global presence, including TAL’s contribution of 17 offices in 11 countries and a network of 225 third party container depot facilities in 39 countries and its customers include the world’s largest shipping companies.

    1. Affinity4Investing–you write pretty much what I said when the original issue came out, but it has performed well. Like so many issues out there they can perform while the economy is growing, but watch out when the next recession hits. Holders should keep a close eye on the financials.

      1. True Tim… AHT also performed well until it burned the crap out of many recently. Just one example, but you and I are on the same page for sure. If the China trade ‘stuff’ goes south, this Triton puppy will be screaching for sure. I’m less optimistic that a deal gets done with China. I think they will stall and stall as we get closer to the election next year, hoping that they get a change in Presidency that will be more favorable to their unfair/dominating ways. They hold much more leverage over us than is usually talked about. IMO, anyways.

    1. DoubleV–I think this will price in the 8.25% to 8.50% area. For me it is a no go–but I am ultra conservative.

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