Trinity Industries, Inc. Announces $1 Billion Extension of Strategic Railcar Alliance with Element Financial Corporation
October 14 2015 - 8:11AM
Business Wire
Today, Trinity Industries, Inc. (NYSE: TRN), through its
wholly-owned subsidiary, TrinityRail Asset Management Company, LLC
(“TRAMCo”) announced the extension of its strategic railcar
alliance with Element Financial Corporation (TSX:EFN) (“Element”),
one of North America's leading equipment finance companies. Under
the extended alliance, Element is expected to acquire up to an
additional $1 billion of leased railcars during the period of 2016
through 2019.
Similar to past purchases by Element under the existing
alliance, the portfolio is expected to consist of new railcars from
Trinity’s leased railcar backlog and existing leased railcars from
the Trinity Industries Leasing Company (“TILC”) fleet; the
portfolio may also include secondary market purchases of leased
railcars identified by Trinity and Element. TILC will continue to
act as exclusive servicer for the leased railcars purchased by
Element under the alliance, maintaining its relationship with the
individual lessees, and receive management fees accordingly.
At this time, the amount of expected sales to Element in each
year of the extended alliance has not been determined. Consistent
with the existing alliance, sales are expected to be reported in
both the Rail and Leasing and Management Services Groups. Macquarie
Capital advised Trinity on this alliance.
“We believe the long-term extension of our successful alliance
with Element further strengthens our unique railcar investment
vehicle platform,” said D. Stephen Menzies, Trinity Industries,
Inc. Senior Vice President and the Group President responsible for
Trinity’s railcar manufacturing and leasing businesses. “In recent
years, the addition of institutional investors and strategic
partners, like Element, enhance our financial flexibility to
further grow our managed lease fleet,” added Mr. Menzies.
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,”
“guidance” 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 “Risk Factors” and “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/20151014005809/en/
Trinity Industries, Inc.Investor Contact:Jessica L.
Greiner, 214-631-4420Director of Investor RelationsorMedia
Contact:Jack Todd, 214-589-8909 or 214-589-2567Vice President,
Public Affairs
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