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BofAML Has Substantial Experience in Container Leasing
$42.90 per share
March 2013
$173 MM
Common Stock Add-On
September 2012
$272 MM
$31.50 per share
Equity
Common Stock Add-On
March 2011
$218 MM
$36.00 per share
$36.42 per share
February 2012
$109 MM
1
Structuring Lead Manager
Initial Principal BalanceClass A: 2.85% Notes (2.83% Yield)Class B: 4.00% Notes (3.96% Yield)
TAL Advantage V LLCSeries 2013-1
Container Lease
March 2013
$272 MM
Has Been Sold to
Financial advisor to SeaCube
April 2013
$1.7 BN
Structuring Lead Manager
CAI Funding II Limited3.47% $171MM Inaugural20121 ABS Yield of 3.50%
October 2012
$171 MM
Joint Lead Manager
4.21% $400MM ABS OfferingFixed Yield of 4.25%
Textainer Marine ContainersLimited
Series 2012-1
April 2012
$400 MM
Sole Manager
Common Stock Block Trade4,036,796 Shares
Lead Left Bookrunner
Offering
8,634,921 Shares
Sole Financial Advisor to Triton
May 2011
Undisclosed
Has Been Sold to
And
Advisory ABS
Lead Left Bookrunner
Offering
6,055,000 Shares
Sole Manager
Common Stock Block Trade3,000,000 Shares
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Container Boxes Vs. Other Leased Asset Classes
Railcar Aircraft Containerships Container Boxes
Average Cost of Assets ~$90,000Wide Body: $200mm (1)
Narrow Body: $80mm (2)3,500 TEU: ~$50mm
10,000 TEU: ~$100mm20 Dry Van: ~$2,500
Asset Purchase Lead Time 1 2 Years ~ 3 Years 2 - 3 Years ~ 3 Months
Residual Value~45 year useful life withpegged residual value($8,000 - $10,000)
~25 year useful life with15% residual value
Low residual b/c ofpressurized environment
~25 year useful life 12 15 years with 40%
residual value
2
____________________ Source: Company filings, Clarksons, Oliver Wyman research, AVITAS and Wall Street Research.(1)Represents list price of a new A330. (2) Represents average list price of a new A319 and A320.
Customer Base Rail, Leasing, Shipping
Companies Global Airlines Global Container Liners Global Container Liners
Competition A few large players with
many smaller players
Market saturated: dozensof competing lessorsdriving down rates
Numerous lessors
KGs out of marketLimited number ofcompeting lessors
OEM Limited number of
producersPotential overproductionat present
Numerous shipyards inChina, Korea, and Asia
Only two majorproducers (Singamas,CIMC)
Method of Debt Financing
HG Bonds
Asset Based Financing
(Influenced by companysize and credit quality)
Asset Based Financing(Securitization / TermLoans)
Public BondsPrimarily Bank Debt
Asset Based Financing
Private Placement Bonds
Bank Debt
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15%
3%3%
13%
Competitive Landscape
Other
DFIC
Gold
Public Container Leasing CompaniesTop 10 Lessors 2012 Market Share (1)
Fleet Size
('000s TEU)
(Owned / Managed) 73% / 27% 99% / 1% 72% / 28%
2,809 2,000 1,091
15%
12%
10%9%
8%
6%6%
3
____________________ (1) Source: Harrison Consulting. Represents market share of total fleet by cost equivalent unit (CEU) as of June 30, 2012.(2) Company filings and Factset as of June 19, 2013.
Average Utilization 95.4% 97.7% 92.2%
Current Market
Capitalization (2) $2,165 $1,435 $599
Valuation
('13E / '14E P / E) (2) 9.9x / 8.9x 9.1x / 8.7x 7.5x / 6.4x
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8%
9%
43%
Top 5 Lessors: Market Share (As Measured By TEUs)
Niche Industry with Structural Barriers to Entry
Other 34%
1998 Today (1)
15%
39%Other 42%
17%
7%
17%
4
Top 5 lessors have remained the same for over a decade
____________________ Source: Container International. Harrison Consulting.(1) Represents market share of total fleet by cost equivalent unit (CEU) as of June 30, 2012.
15%
12%
10%9%
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Attractive & Stable Return on Equity
Returns and Earnings Have Been Relatively Strong andStable Through the Cycle
23%
30.0%
40.0%
____________________ Source: Company filings and Factset as of June 19, 2013.
Note: ROE is calculated as net income divided by the average shareholders equity.(1) Container Lesssors include TAL International, Textainer Group Holdings, and CAI International.(2) Containership Lessors includes Seaspan and Costamare.(3) Aircraft Lessors includes AerCap Holdings and Aircastle and AirLease.(4) Equipment Leasing includes Ryder, GATX Corp, Trinity, Mobile Mini and Greenbrier Companies Inc.
5
Equipment Leasing (4)Aircraft Lessors (3)Container Lessors (1) Containership Lessors (2)
18%
5%
12%
2006 2007 2008 2009 2010 2011 2012
(10.0%)
0.0%
10.0%
20.0%
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250%
300%
350%
400%
Box Lessors Were the First to Recover Out of the Downturnon the Back of Improving Fundamentals
380%
284%
Box Lessors Led the Recovery Beginning in Late 2009
0%
50%
100%
150%
200%
Jan-09 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Nov-10 Mar-11
Box Leasing Aircraft Leasing Equipment Leasing Containership Leasing S&P 500
6
141%
198%
121%
____________________
Source: Wall Street research and Clarksons website.(1)Container Leasing includes CAI International, TAL International, Textainer Group Holdings and SeaCube.(2) Aircraft Lessors includes FLY Leasing, Aircastle, AirLease and AerCap.(3) Equipment Leasing includes Ryder, Greenbrier, Mobile Mini, Trinity and GATX Corp.(4) Containership leasing includes Costamare, Diana Containerships, Danaos, Box Ships, and Seaspan.
(2) (3) (4)(1)
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20%
25%
Return On EquityPrice / Book
Container Lessors Are Undervalued
Price / Book 2013E P/E
Container Lessors (1)
15.9x15.1x
16.0x
20.0x
3.0x
4.0x
0%
5%
10%
5.0x 10.0x 15.0x 20.0x
7
____________________
Source: Company filings and Factset as of June 19, 2013.(1) Container Lesssors include TAL International, Textainer Group Holdings, and CAI International.(2) Containership Lessors includes Seaspan and Danaos.(3) Aircraft Lessors includes AerCap Holdings, Aircastle and AirLease.(4) Equipment Leasing includes Ryder, GATX Corp, Trinity, Mobile Mini and Greenbrier Companies Inc.
Equipment Leasing (4)Aircraft Lessors (3)Container Lessors (1) Containership Lessors (2)
Containership Lessors (2)
Aircraft Lessors (3)Equipment Leasing (4)
2013E P/E
5 - Y e a r
A v g . R
O E
2.0x
1.1x1.0x
1.9x
8.8x
11.0x
0.0x
4.0x
8.0x
.
0.0x
1.0x
2.0x
Container Containership Aircraft Equipment
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Significant M&A Activity
There Has Been Significant Recent M&A Activity
Asset Buyer Date
Ontario Teachers Pension Plan January 2013
HNA / Bravia Capital August 2011
Vestar Capital / Warburg Pincus February 2011
8
While Traditional KG Owners Have Essentially Reduced their Activities
____________________ Source: Konig & Cie; Marine Money, September 2012.
2,4543,261 3,534
3,995
6,113 6,2657,073
5,871
7,391
5,743
1,576 1,694986
0
2000
4000
6000
8000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Equity Debt
($ in Millions)
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Strong Appetite for Alternative ABS
Container ABS New Issues Post Crisis
Most of the major container lessors utilize the term ABS markets as a primary funding source for cap ex with over ~$2.5BN of containerterm ABS issued in 2012
TAL IV 2010-1 Jun-10 $197MM 5.50% TALTAL IV 2010-1 Oct-10 $203MM 4.30% TALTAL IV 2011-1 Jan-11 $174MM 4.60% TALCLIF 2011-1 Mar-11 $230MM 4.50% SeacubeTAL IV 2011-2 May-11 $235MM 4.31% TALTMCL 2011-1 Jun-11 $400MM 4.70% Textainer
- -
9
.
CRNN 2011-1 Nov-11 $200MM 5.00% CronosTMCL 2012-1 Apr-12 $400MM 4.25% TextainerTAL 2012-1 May-12 $250MM 3.90% TALTCF 2012-1 May-12 $500MM 4.25% TritonCRNN 2012-1 May-12 $250MM 4.25% CronosCLIF 2012-1 Jun-12 $225MM 4.25% SeacubeSEACO 2012-1 Jul-12 $250MM 4.15% SeacoCRNN 2012-2 Sep-12 $300MM 3.85% CronosBCF 2012-1 Sep-12 $250MM 3.75% BeaconCAI 2012-1 Oct-12 $171MM 3.50% CAITAL 2013-1 Feb-13 $272MM 2.85% Sr. & 4.00% Jr. TALCLIF 2013-1 Mar-13 $250MM 2.85% SeaCubeCAI 2013-1 Mar-13 $229MM 3.38% CAICRNN 2013-1 Apr-13 $300MM 3.10% CronosSEACO 2012-1 Apr-13 $400MM 3.00% SeacoCLIF 2013-2 Jun-13 $300MM 3.25% SeaCube