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Triton International to Sell Preferred Issue

Container leasing company Triton International (TRTN) has announced they will be selling a new issue of perpetual preferred stock.

Triton has a number of preferred issues outstanding already, which can be seen here.

It should be noted that TRTN is owned by Brookfield Infrastructure Corporation (BIPC). While BIPC has deep pockets all companys they own are expected to carry their own weight and TRTN continues to file SEC reports as if they were a standalone company.

The preliminary prospectus can be read here.

Thanks to J for being on this one and for Jerrymac for chiming in with yield talk in the 7.75% area.

6 thoughts on “Triton International to Sell Preferred Issue”

  1. brookfield is a hard-nosed player. Just like some of the private-equity people.

    When they can screw over investors or orthers to their own benefit – they will. Be forewarned.

    1. Rvert,

      Not out of the question, though not mentioned as one of their expected uses of proceeds.

      “We expect to use the net proceeds from the sale of Series F Preference Shares by us for general corporate purposes, including the purchase of containers, payment of dividends and repayment or repurchase of outstanding indebtedness.”

      They referred only to “repayment” of debt. Of course, these are only their EXPECTED uses, so they can still redeem a preferred if they want.

      1. mbg I just looked and most of Triton’s bonds are at 3-1/8 to 3.25% and not due until 2031 & 2032 I would bet they would get rid of the higher cost preferred. My concern is it related to shipping and they have way too many different preferred already outstanding and it is Brookfield

        1. BIP pfds have traded pretty poorly IMO. And you can get their 7 1/4 which is IG at a discount, So this is shipping financing, thru a subsidiary of a rather opaque and leveraged parent. Who could easily shift this off balance sheets and then we’d be stuck with common (of what, at what pro rata share?) I certainly dont like 3/4-7/8’s turned into 5/8’s. My friend reviewed prospectus warning and also begged off.

          Watch it perform well.

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