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Proceeds

Estimate net proceeds to company from this offering will be approximately US$167.5 million, or approximately $192.7 million if the underwriters exercise their over-allotment option in full, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by company. A $1.00 increase (decrease) in the assumed initial public offering price of US$12.00 per share would increase (decrease) the net proceeds from this offering by approximately US$8.4 million, assuming that the number of shares offered by company remains the same.

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Use of proceeds

• To repay the debt incurred to fund the $56.0 million purchase price for purchase of the exclusive rights to manage the container fleet of Capital from Green Eagle Investments N.V. which acquisition closed on July 23, 2007. 

• To pay for the purchase of half of the interests held by FB in its subsidiary, Textainer Marine Containers Limited. at a cash price equal to (i) 25% of the total shareholders’ equity of the Class A Shares of Textainer Marine Containers Limited on the day immediately preceding the closing of such acquisition, plus (ii) $18.0 million. If the transaction had closed on July 31, 2007, the cash purchase price would have been approximately $68.7 million. FB shall hold 25% of all issued and outstanding Class A Shares of Textainer Marine Containers Limited after the close of this transaction. Company is in the process of negotiating the transaction documents and expect to close the transaction within two business days after the closing of this offering or as soon as practicable thereafter.

• For general corporate purposes, including repayment of debt, working capital and capital expenditures. Company may use proceeds from this offering for fleet expansion and acquisitions of complementary businesses, products, technologies or other assets.

Pending such uses, company may invest the net proceeds from this offering in short-term, interest-bearing, investment-grade securities or certificates of deposit.

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Common stock to be outstanding be outstanding after this offering excludes:

The number of common shares that will be issued and outstanding after this offering is based on the number of shares issued and outstanding as of June 30, 2007, and excludes the common shares reserved for future issuance under 2007 Share Incentive Plan. Company have reserved a maximum of 8% of its  issued and outstanding common shares as of 45 days after the completion of this offering for issuance under 2007 Share Incentive Plan.

This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision

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