Old Hill provided $5.1 million in the form of a senior secured drawdown facility to a company that acquires and leases standard 40-foot shipping containers. Its lessees include shippers with trade routes in Asia and the Middle East. Leasing and container management services are provided to the borrower by managers in Hong Kong and Singapore. Security for the facility consists of the new containers, the leases, receivables from the leases, a stock pledge of the borrower and guarantees.

“We believe that the global shortage of containers presents an opportune time to finance owners and lessors of these assets. Lease rates are at historic highs and container owners are able to lock-in these rates under long-term leases. We worked closely with the borrower and its parent company, which has extensive experience in container acquisition and leasing, to craft a transaction that capitalized on the opportunity while building-in collateral and cashflow safeguards to mitigate risk. We continue to be interested in this sector and in transport finance generally.” said Sam Adams, Portfolio Manager at Old Hill.