Greenbrier amends, upsizes credit agreements, gets new term loan

By Mary-Katherine Stinson

Lexington, Ky., Aug. 3 – Greenbrier Cos., Inc. entered into a third amendment to its fourth amended and restated credit agreement on July 29 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amended facility increases the term debt basket to $450 million from $300 million.

It also replaces the benchmark rate with term SOFR from Libor for U.S. dollar-denominated loans and makes certain related conforming changes.

Greenbrier Leasing

Also on July 29, Greenbrier’s wholly owned subsidiary, Greenbrier Leasing Co. LLC, entered into a second amendment to its amended and restated credit agreement with BofA as administrative agent, according to a press release and an 8-K filing with the SEC.

The second amendment provides for a new $150 million term loan to finance the continued growth of its leasing fleet.

The term loan consists of an incremental term loan of $75 million and a delayed-draw term loan facility of up to $75 million, which has an availability period of six months and is subject to the satisfaction of certain conditions.

Half of the loan amount was drawn at closing, and the company stated in a press release that it expects the balance to be used in the next six months.

Both the term loan and the delayed-draw facility have the same maturity date of July 2027.

The interest rate is also unchanged from the existing term loans under the original credit facility. The interest rate was not disclosed in the filing.

There is a commitment fee on the undrawn portion of the delayed-draw facility.

The second amendment also replaces the benchmark rate with term SOFR from Libor for U.S. dollar-denominated loans and makes certain related conforming changes.

“[Interest] rates on Greenbrier’s long-term debt are fixed at attractive levels, with no material debt maturities until 2026. Strong liquidity, combined with our new railcar backlog valued at $3.6 billion as of May 31, 2022, and continued high lease fleet utilization, positions Greenbrier well to navigate current macroeconomic conditions,” chief executive officer & president Lorie Tekorius said in the press release.

Greenbrier is a Lake Oswego, Ore.-based supplier of transportation equipment and services to the railroad industry.

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