Trinity Industries, Inc.’s Leasing Company Announces $482.5 Million Railcar Financing
June 20 2018 - 4:23PM
Business Wire
Trinity Industries, Inc. (NYSE:TRN) (“Trinity”) today reported
that its wholly-owned subsidiaries, Trinity Industries Leasing
Company ("TILC") and Trinity Rail Leasing 2018 LLC, ("TRL-2018")
closed a two-tranche, railcar asset-backed securitization in the
aggregate amount of $482.5 million with a blended coupon of
approximately 4.41% and a weighted average life of approximately 8
years. The transaction is secured by 7,090 railcars, with a
fair-market value of $621.6 million, and their associated operating
leases. The obligations of the equipment notes are non-recourse to
Trinity and TILC.
Net proceeds received from the transaction will be used to repay
a portion of the conversion settlement value of Trinity’s $449.3
million convertible subordinated notes that were recently called
for redemption at par on June 1, 2018. Holders of approximately
$448.5 million aggregate principal amount of the notes submitted
notices for conversion of their notes prior to the conversion
deadline of May 30, 2018. The aggregate settlement amount of the
notes submitted for conversion, with settlement dates occurring on
various dates between May 30, 2018 and July 3, 2018, cannot be
determined at this time; however, the aggregate settlement amount
will exceed the net proceeds from the asset-backed
securitization.
“We were pleased with the high level of investor interest in the
TRL-2018 secured railcar equipment notes offering and our ability
to execute the transaction with favorable terms and conditions,”
said James E. Perry, Senior Vice President and Chief Financial
Officer for Trinity Industries, Inc. “The net proceeds from the
issuance facilitates the redemption of our convertible subordinated
notes ahead of the Company’s planned spin-off of its
infrastructure-related businesses in the fourth quarter of
2018.”
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns complementary
market-leading businesses providing products and services to the
energy, chemical, agriculture, transportation, and construction
sectors, among others. 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 redemption and
conversion payments options and associated sources and forms of any
payments, estimates, expectations, beliefs, intentions or
strategies for the future, and the assumptions underlying these
forward-looking statements. Trinity uses the words “anticipates,”
“assumes,” “believes,” “estimates,” “expects,” “intends,”
“forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180620006266/en/
Trinity Industries, Inc.Investor Contact:Preston Bass,
214-631-4420Director, Investor RelationsorMedia Contact:Jack
Todd, 214-589-8909Vice President, Public Affairs
Trinity Industries (NYSE:TRN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Trinity Industries (NYSE:TRN)
Historical Stock Chart
From Apr 2023 to Apr 2024