TRTN - Why I Passed On Triton's Recent Issue Of New Preferred Shares

• Triton is a leader in leasing containers, and this is a stable and strongly cash flowing business.
• As the balance sheet already contains quite a bit of debt, Triton recently issued preferred shares with a 5.75% preferred dividend yield.
• While the dividend coverage ratio is absolutely excellent and the asset coverage ratio is good, I passed on participating in this issue.
• My main concern is the balance sheet which consists for about 75% of debt. A sudden value decrease of containers would put the equity value under pressure.
• I passed on going long, but that's a personal decision. Others may be happy to collect a 5.6% yield.

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