v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
The table below summarizes the Company's key terms and carrying value of debt as of the periods indicated:

June 30, 2026December 31, 2025
Outstanding Borrowings (in thousands)Contractual Weighted Avg Interest RateMaturity RangeOutstanding Borrowings (in thousands)
FromTo
Secured Debt Financings
Securitization ("ABS") term instruments$2,436,873 4.17 %February 2028August 2035$2,023,819 
Securitization warehouse95,000 5.18 %November 2032November 2032260,000 
Total secured debt financings2,531,873 2,283,819 
Unsecured Debt Financings
Senior notes1,800,000 3.85 %June 2031February 20331,800,000 
Credit facility:
Revolving credit tranche59,500 4.93 %August 2030August 2030960,000 
Term loan tranche1,499,600 4.93 %August 2030August 20301,564,800 
Commercial paper512,970 4.38 %July 2026September 2026— 
Total unsecured debt financings3,872,070 4,324,800 
Total debt financings$6,403,943 $6,608,619 
Unamortized debt costs(46,398)(39,373)
Unamortized debt premium & discounts(5,532)(2,168)
Debt, net of unamortized costs$6,352,013 $6,567,078 
Securitization Term Instruments

Under the Company's ABS facilities, indirect wholly owned subsidiaries of the Company enter into debt agreements for ABS term instruments, including ABS notes. These subsidiaries are intended to be bankruptcy remote so that such assets are not available to creditors of the Company or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings.

The Company’s borrowings under the ABS facilities amortize in monthly installments, typically over five or more years. These facilities provide for an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to nine months of interest expense on certain securitized term instruments.

The Company maintains irrevocable standby letters of credit to satisfy the restricted cash balance requirements equal to nine months of interest expense on certain of the ABS facilities. As of June 30, 2026, the current value of the standby letters of credit for the Company's ABS facilities was $27.0 million.

On May 13, 2026, the Company issued a series of securitization fixed-rate notes in the principal amount of $547.4 million at a weighted average interest rate of 5.29% and an expected maturity date of August 2035. The proceeds from this issuance were primarily used to repay borrowings under the revolving credit tranche of our credit facility.

Securitization Warehouse

Under the Company’s Securitization warehouse facility, an indirect wholly owned subsidiary of the Company issues ABS notes. This subsidiary is intended to be bankruptcy remote so that such assets are not available to creditors of the Company or
its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings.

The Company's Securitization warehouse facility has a maximum borrowing capacity of $1,125.0 million that is available on a revolving basis until the November 20, 2028 conversion date. The interest rate under the Securitization warehouse facility for the revolving period is daily compounded SOFR plus 1.50%. After the revolving period, borrowings will convert to term notes with a final maturity date of November 30, 2032 and bear interest at daily compounded SOFR plus 2.50%.

During the revolving period, the borrowing capacity under this facility is determined by applying an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment are determined according to the related debt agreement and may be different than those calculated per GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three months of interest expense.

Senior Notes

The Company’s senior notes are unsecured and have initial maturities ranging from seven to ten years and interest payments due semi-annually. The senior notes are prepayable (in whole or in part) at the Company's option at any time prior to the maturity date, subject to certain provisions in the senior note agreements, including the payment of a make-whole premium with respect to such prepayment.

On January 21, 2026, the Company completed a $600.0 million senior unsecured investment grade bond offering. The bond offering has a contractual interest rate of 5.15% and maturity date of February 15, 2033.

Credit Facility

The Company's credit facility has a maturity date of August 7, 2030 and includes a $2,000.0 million revolving credit tranche, and a term loan tranche. Term loan tranche borrowings under the facility amortize in quarterly installments. The interest rate under the credit facility is Daily Simple SOFR plus 1.25%. The credit facility is subject to covenants customary for financings of this type, including financial covenants that require the Company to maintain a minimum ratio of unencumbered assets to certain financial indebtedness.

Commercial Paper

On March 20, 2026, the Company established a commercial paper program to issue unsecured commercial paper notes up to a maximum aggregate face or principal of $2,000.0 million, with maturities up to 397 days from the date of issue. The net proceeds from issued notes are used for refinancing of indebtedness, purchases of containers, dividends, or general corporate purposes. The revolving credit tranche of the credit facility, which is discussed above, serves as a liquidity backstop for the repayment of notes outstanding under the program. The notes rank equally with all other unsecured and unsubordinated debt. As of June 30, 2026, the Company had $513.0 million of notes outstanding under the program.

Derivative Impact on Debt

The Company hedges the risks associated with fluctuations in interest rates on a portion of its floating-rate debt by entering into interest rate swap agreements that convert a portion of its floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense.
The following table summarizes the Company's outstanding fixed-rate and floating-rate debt as of June 30, 2026:

Balance Outstanding (in thousands)Contractual Weighted Avg Interest RateMaturity RangeWeighted Avg Remaining Term
FromTo
Excluding impact of derivative instruments:
Fixed-rate debt$4,236,873 4.03%Feb 2028Aug 20354.7 years
Floating-rate debt (1)
$2,167,070 4.81%Aug 2030Nov 20323.7 years
Including impact of derivative instruments:
Fixed-rate debt$4,236,873 4.03%
Hedged floating rate debt1,148,000 3.27%
Total fixed and hedged floating-rate debt5,384,873 3.87%
Unhedged floating rate debt1,019,070 4.81%
Total debt financings$6,403,943 4.00%
(1) Includes commercial paper which has a weighted average remaining term of less than three months. The Company regularly rolls its commercial paper issuances and maturities, and for the purposes of the table above, aligns the maturity with the revolving credit tranche of the credit facility, which serves as the backstop for the commercial paper program.

The fair value of total debt outstanding was $6,231.7 million and $6,455.9 million as of June 30, 2026 and December 31, 2025, respectively, and was measured using Level 1 and Level 2 inputs.

As of June 30, 2026, the maximum borrowing levels for the ABS warehouse and the revolving credit tranche of the credit facility were $1,125.0 million and $2,000.0 million, respectively. These facilities are governed by either borrowing bases or an unencumbered asset test that limits borrowing capacity. Based on those limitations, the availability under these revolving credit facilities on June 30, 2026 was approximately $909.9 million.
The Company is subject to certain financial covenants under its debt financings. As of June 30, 2026, the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements.