LAKE OSWEGO, Ore., July 18, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE:GBX) ("Greenbrier") today announced that it
is issuing a notice of redemption (the "Redemption Notice")
notifying holders of its outstanding 2.375% Convertible Senior
Notes due 2026 (the "Notes") that, pursuant to the terms of the
Notes and the indenture governing the Notes (the "Indenture"),
Greenbrier is calling for redemption on August 18, 2016 (the "Redemption Date"), prior to
their maturity, all of its outstanding Notes at a redemption price
equal to 100% of the principal amount of the Notes (the "Redemption
Price"), plus accrued and unpaid interest thereon to, but
excluding, the Redemption Date (the "Interest"). The
Redemption Price, together with the Interest, will be due and
payable on each redeemed Note on the Redemption Date as provided in
the Redemption Notice.
Pursuant to the terms of the Notes and the Indenture, the Notes
may be converted into Greenbrier common stock prior to 5:00 p.m., Eastern Time, on August 16, 2016, the second business day
preceding the Redemption Date provided that the requirements set
forth in Article XII of the Indenture are satisfied. The
Conversion Rate is 21.2958 shares of common stock per $1,000 principal amount of the Notes, or an
effective conversion price of approximately $46.96 per share. If none of the Notes are
converted, Greenbrier expects that the aggregate purchase price
will be approximately $870,000, not
including accrued interest.
U.S. Bank National Association is acting as paying agent and
conversion agent. Holders of the Notes are encouraged to read
the Redemption Notice which contains important information
regarding the redemption of the Notes and their
convertibility. Copies of the Redemption Notice may be
obtained from U.S. Bank National Association by calling
1-800-934-6802.
None of Greenbrier, its board of directors or its employees has
made or is making any representation or recommendation to any
holder with respect to the matters disclosed in this press
release.
This press release is for informational purposes only and is not
an offer to purchase, or a solicitation of an offer to purchase,
any securities.
About Greenbrier
Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of
transportation equipment and services to the railroad industry.
Greenbrier builds new railroad freight cars in manufacturing
facilities in the U.S., Mexico and
Poland and marine barges at our
U.S. manufacturing facility. Greenbrier sells reconditioned wheel
sets and provides wheel services at locations throughout the U.S.
We recondition, manufacture and sell railcar parts at various U.S.
sites. Through GBW Railcar Services, LLC, a 50/50 joint venture
with Watco Companies, LLC, freight cars are repaired and
refurbished at over 30 locations across North America, including more than 10 tank car
repair and maintenance facilities certified by the Association of
American Railroads. Greenbrier owns a lease fleet of over 9,000
railcars and performs management services for over 260,000
railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: This press release may contain
forward-looking statements, including statements regarding expected
new railcar production volumes and schedules, expected customer
demand for the Company's products and services, plans to adjust
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, changes in demand for the Company's railcar
services and parts business, and the Company's future financial
performance. Greenbrier uses words such as "anticipates,"
"believes," "forecast," "potential," "goal," "contemplates,"
"expects," "intends," "plans," "projects," "hopes," "seeks,"
"estimates," "strategy," "could," "would," "should," "likely,"
"will," "may," "can," "designed to," "future," "foreseeable future"
and similar expressions to identify forward-looking
statements. These forward-looking statements are not
guarantees of future performance and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking
statements. Factors that might cause such a difference
include, but are not limited to, reported backlog and awards are
not indicative of our financial results; inability to convert
backlog of railcar orders and obtain and execute lease syndication
commitments; uncertainty or changes in the credit markets and
financial services industry; high levels of indebtedness and
compliance with the terms of our indebtedness; write-downs of
goodwill, intangibles and other assets in future periods;
sufficient availability of borrowing capacity; fluctuations in
demand for newly manufactured railcars or failure to obtain orders
as anticipated in developing forecasts; loss of one or more
significant customers; customer payment defaults or related issues;
sovereign risk to contracts, exchange rates or property rights;
actual future costs and the availability of materials and a trained
workforce; failure to design or manufacture new products or
technologies or to achieve certification or market acceptance of
new products or technologies; steel or specialty component price
fluctuations and availability and scrap surcharges; changes in
product mix and the mix between segments; labor disputes, energy
shortages or operating difficulties that might disrupt
manufacturing operations or the flow of cargo; production
difficulties and product delivery delays as a result of, among
other matters, costs or inefficiencies associated with expansion,
start-up or changing of production lines or changes in production
rates, changing technologies, transfer of production between
facilities or non-performance of alliance partners, subcontractors
or suppliers; ability to obtain suitable contracts for the sale of
leased equipment and risks related to car hire and residual values;
integration of current or future acquisitions and establishment of
joint ventures; succession planning; discovery of defects in
railcars or services resulting in increased warranty costs or
litigation; physical damage or product or service liability claims
that exceed our insurance coverage; train derailments or other
accidents or claims that could subject us to legal claims; actions
or inactions by various regulatory agencies including potential
environmental remediation obligations or changing tank car or other
rail car or railroad regulation; and issues arising from
investigations of whistleblower complaints; all as may be discussed
in more detail under the headings "Risk Factors" and "Forward
Looking Statements" in our Annual Report on Form 10-K for the
fiscal year ended August 31, 2015,
and our other reports on file with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's
opinions only as of the date hereof. Except as otherwise
required by law, we do not assume any obligation to update any
forward-looking statements.
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SOURCE The Greenbrier Companies, Inc. (GBX)