(7) Debt

The Company's revolving credit facility, including any amounts drawn on the facility, is secured by substantially all of the assets of the Company (not otherwise used as security for its other credit facilities) including the containers owned by the Company, the underlying leases thereon and the Company's interest in any money received under such contracts. The Company's term loans, asset backed warehouse facility and capital lease obligations are secured by specific pools of containers owned by the Company, the underlying leases thereon and the Company's interest in any money received under such contracts.

(a) Revolving Credit Facility

The Company has a revolving line of credit agreement with a consortium of banks to finance the acquisition of assets and for general working capital purposes. As of December 31, 2011, the maximum credit commitment under the revolving line of credit was $360.0 million. The maximum credit commitment was increased to $380.0 million effective January 30, 2012.

The Company's revolving credit facility may be increased under certain conditions described in the agreement governing the facility. In addition, there is a commitment fee on the unused amount of the total commitment, payable quarterly in arrears. The agreement provides that swing line loans (short-term borrowings of up to $10.0 million in the aggregate that are payable within 10 business days or at maturity date, whichever comes earlier) and standby letters of credit (up to $15.0 million in the aggregate) will be available to the Company. These credit commitments are part of, and not in addition to, the total commitment provided under the agreement. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the revolving credit facility. As of December 31, 2011, the average interest rate under the amended agreement was approximately 3.0%. The agreement governing the Company's revolving credit facility also contains various financial and other covenants. It also includes certain restrictions on the Company's ability to incur other indebtedness or pay dividends to stockholders. As of December 31, 2011, the Company was in compliance with the terms of the revolving credit facility.

As of December 31, 2011, the outstanding balance under the Company's revolving credit facility was $261.0 million. As of December 31, 2011, the Company had $98.9 million in availability under the revolving credit facility (net of $0.1 million in letters of credit) subject to its ability to meet the collateral requirements under the agreement governing the facility. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default.

The agreement under the Company's revolving credit facility will terminate on September 25, 2014.

(b) Term Loans

Term loans consist of the following:

(i) Bank Term Loan. On December 20, 2010, the Company entered into a Term Loan Agreement with a consortium of banks. Under this loan agreement, the Company was eligible to borrow up to $300.0 million, subject to certain borrowing conditions, which amount is secured by certain assets of the Company's wholly owned foreign subsidiaries. The Company initially borrowed $185.0 million under the agreement and drew down the remaining $115.0 million of the loan facility during the quarter ended September 30, 2011. The loan agreement is an amortizing facility with a term of six years. Quarterly payments of principal for the $185.0 million initially borrowed are $3.7 million each (i.e. 2.0% of the drawn amount) for the first 23 quarterly payment dates with a final payment of $99.9 million (54.0% of the drawn amount) due on December 20, 2016. The quarterly payments of principal on the additional draw downs (each determined separately) are an amount equal to the product of (x) the quotient obtained by dividing 46.0% by the number of remaining scheduled principal payment dates, as of the drawdown date and (y) the initial principal balance of such term loan, with a final payment due on December 20, 2016 of 54.0% of the initial principal balance of such term loan. The loan bears a variable interest rate based on LIBOR for Eurodollar loans, and Base Rate for base rate loans. The Base Rate is defined as the highest of (i) the federal funds rate plus 1/2 of 1.0%, (ii) the prime rate (as published in The Wall Street Journal), and (iii) the Eurodollar rate (for three-month loans) plus 1.0%. The proceeds from this borrowing were used to pay down part of the Company's borrowings under the revolving credit facility. As of December 31, 2011, the loan had a balance of $280.6 million, of which $25.0 million is repayable within one year, and an average interest rate of 3.5%. The loan agreement contains various financial and other covenants. As of December 31, 2011, the Company was in compliance with all the covenants under the loan agreement.

The following are the estimated future principal and interest payments under this loan as of December 31, 2011 (in thousands). The payments were calculated assuming the interest rate remains 3.5% through maturity of the loan.

2012	$	34,792
2013		33,862
2014		32,960
2015		32,058
2016 and thereafter		186,932
		320,604
Less: Amount representing interest		(40,026	)
Bank term loan	$	280,578

(ii) Related Party Term Loan. On August 20, 2009, the Company signed a $10.0 million five-year loan agreement with the Development Bank of Japan (DBJ). As of the date of closing of the loan agreement, DBJ owned approximately 9.4% of the Company's outstanding common stock. The loan is payable in 19 quarterly installments of $0.2 million starting October 31, 2009 and a final payment of $6.2 million on July 31, 2014. The loan bears a variable interest rate based on BBA LIBOR rate and is secured by container rental equipment owned by the Company. The loan had a balance of $8.2 million and interest rate of 2.8% as of December 31, 2011. The agreement governing the Company's term loan contains various financial and other covenants. As of December 31, 2011, the Company was in compliance with the terms of the term loan.

2012	$	1,027
2013		1,004
2014		6,737
		8,768
Less: Amount representing interest		(568	)
Related party term loan	$	8,200

In December 2010, DBJ sold 753,000 shares of the Company's stock, thereby reducing its equity interest to 4.9% of the Company's total outstanding shares of common stock as of December 31, 2011.

c) Asset-Backed Warehouse Facility

On September 9, 2011, the Company, through its wholly-owned indirect subsidiary, CAL Funding I Limited, entered into a credit facility for $100.0 million of asset-backed warehouse notes, which facility may be increased to $200.0 million subject to certain conditions. The Company borrowed $51.0 million under the facility during the quarter ended December 31, 2011, and the commitment for further funding extends until September 8, 2013. The notes bear a variable interest rate based on LIBOR during the initial two-year funding period. If the notes are not refinanced or renewed during this two-year period, the facility is structured to amortize over a term that is scheduled to be ten years, although the total term of the facility cannot exceed 15 years. As of December 31, 2011, the warehouse credit facility had a balance of $51.0 million and an average interest rate of 2.8%. Under the terms of the credit facility, the Company is required to maintain a restricted cash balance on deposit in a designated bank account equal to five months of interest. As of December 31, 2011, the Company had a balance of $0.6 million in the restricted cash account. The facility contains various financial and other covenants. As of December 31, 2011, the Company was in compliance with all the covenants under the credit facility.

2012	$	1,420
2013		2,689
2014		6,408
2015		6,266
2016 and thereafter		43,745
		60,528
Less: Amount representing interest		(9,528	)
Asset backed warehouse facility	$	51,000

(d) Capital Lease Obligations

As of December 31, 2011, the Company had capital lease obligations of $20.3 million. The underlying obligations are denominated in U.S. Dollars and Euros at fixed and floating interest rates averaging 3.1% as of December 31, 2011 with maturity dates between September 2013 and June 2019.

The following are the estimated future principal and interest payments under capital lease obligations as of December 31, 2011 (in thousands). The payments were calculated assuming the interest rate remains 3.1% through maturity of the loan.

2012	$	4,371
2013		3,830
2014		2,680
2015		2,363
2016 and thereafter		8,9477
		22,191
Less: Amount representing interest		(1,919	)
Capital lease obligation	$	20,272