Stonepeak Taurus Lower Holdings LLC

Overview Key strengths Key risks One of the three major chassis lessors in North America. Demand depends on cyclical factors, including U.S. containerized import volumes. Long-term contracts with large ocean shipping lines. Small presence in the domestic segment that typically has more stable demand trends. Adequate liquidity, supported by availability under the ABL facility. Highly leveraged capital structure and high historical dividend payouts. Containerized import volumes improved meaningfully in 2024, increasing about 15% year over year according to the National Retail Federation (NRF), supported by steady macroeconomic conditions and consumer demand. Despite the higher volumes, TRAC's marine pool fleet utilization through the nine months ended Sept. 30, 2024, declined to the high-50% area, compared with about 60% in 2023, and

...S&P Global Ratings expects Stonepeak Taurus Lower Holdings LLC's (TRAC's) revenue and cash flow through 2025 to be negatively affected by lower fleet utilization. Containerized import volumes improved meaningfully in 2024, increasing about 15% year over year according to the National Retail Federation (NRF), supported by steady macroeconomic conditions and consumer demand. Despite the higher volumes, TRAC's marine pool fleet utilization through the nine months ended Sept. 30, 2024, declined to the high-50% area, compared with about 60% in 2023, and the mid-80% area in 2022. This was because supply chain disruptions have eased significantly over the past two years, resulting in shorter rental periods (lower dwell times due to quicker return of chassis to the pools), affecting utilization rates and pricing to customers....

Full Report