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Greenbrier Completes Second Successful Railcar Asset-Backed Securities Issuance

November 21, 2023, 05:00 AM
Filed Under: Transportation

The Greenbrier Companies, Inc., an international supplier of equipment and services to global freight transportation markets, announced the completion of a follow-on offering of railcar asset-backed securities (ABS) securing long-term financing for its leasing business.

GBX Leasing 2022-1 LLC, a wholly owned special purpose subsidiary of GBX Leasing, LLC, a wholly owned subsidiary of Greenbrier, issued an aggregate principal amount of $178.5 million of its Series 2023-1 Class A and Class B Notes (Notes) with a blended interest rate of 6.5 percent and a 2 1/2-year call feature. The Notes are rated "AA" and "A" by S&P Global Ratings and have a weighted average life of approximately 6.5 and 6.7 years, respectively. The railcar securitization will be consolidated on Greenbrier's balance sheet but is non-recourse to Greenbrier.

Greenbrier CEO and President Lorie L. Tekorius said, "We secured long-term, fixed-rate financing at attractive rates with a call feature that provides us forward flexibility to respond to a lower interest rate environment. This financing is structured to keep our balance sheet strong while we grow our lease fleet, a lynchpin to achieve our goal of increasing recurring revenue. The disciplined building of a high-quality railcar portfolio secured an "AA" rating on the Class A Notes, a first for Greenbrier. This demonstrates the industry-leading capabilities of our commercial and leasing teams. By working together, each team member leveraged their respective abilities in the railcar leasing and finance markets to achieve a superior result. I commend all of them on this successful collaboration."

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