Trinity Industries, Inc. Announces the Repayment and Partial Refinancing of $340 million of Secured Lease Financing
June 05 2015 - 8:30AM
Business Wire
Trinity Industries, Inc. (NYSE:TRN) today announced that its
indirect wholly-owned subsidiary, Trinity Rail Leasing VI LLC (“TRL
VI”), repaid in full approximately $340 million of non-recourse
promissory notes (“the Notes”) in May. TRL VI is a wholly-owned
subsidiary of Trinity Industries Leasing Company (“TILC”). The
Notes were issued by TRL VI in 2008 and secured by a diversified
portfolio of leased railcars and certain cash reserves. The Notes
had an effective interest rate of 5.63%, after consideration of
interest rate hedges. Per the original terms of the Notes, the
borrowing margin was scheduled to increase by 0.50% in May.
As previously indicated on its first quarter 2015 earnings
conference call, the Company anticipated repaying the Notes ahead
of scheduled maturity to reduce financing costs and create
flexibility to use the portfolio of leased railcars in future
financings or sales to institutional investors.
The Company has partially refinanced the Notes repayment with a
$250 million borrowing under TILC’s warehouse facility, which was
recently renewed and increased in April from $475 million to $1
billion. The initial effective interest rate on the warehouse
borrowing is expected to be 1.95%. This refinancing was included in
the Company’s most recent earnings guidance.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses
which provide products and services to the energy, transportation,
chemical and construction sectors. Trinity reports its financial
results in five principal business segments: the Rail Group, the
Railcar Leasing and Management Services Group, the Inland Barge
Group, the Construction Products Group, and the Energy Equipment
Group. For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts,
are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements about Trinity's estimates,
expectations, beliefs, intentions or strategies for the future, and
the assumptions underlying these forward-looking statements.
Trinity uses the words “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “forecasts,” “may,” “will,” “should,” and
similar expressions to identify these forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from historical
experience or our present expectations. For a discussion of such
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see
“Forward-Looking Statements” in the Company's Annual Report on Form
10-K for the most recent fiscal year.
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version on businesswire.com: http://www.businesswire.com/news/home/20150605005378/en/
Trinity Industries, Inc.Investor Contact:Jessica L.
Greiner, 214-631-4420Director of Investor RelationsorMedia
Contact:Jack Todd, 214-589-8909Vice President, Public
AffairsTrinity Industries, Inc.
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