Greenbrier Leasing obtains $200 million term loan due 2020 via BofA

By Toni Weeks

San Luis Obispo, Calif., March 26 - Greenbrier Cos., Inc. subsidiary Greenbrier Leasing Co. LLC negotiated a six-year $200 million senior secured term loan on March 20 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission. The facility has a $50 million accordion feature.

Borrowings bear interest at Libor plus 150 basis points to 200 bps depending on the consolidated capitalization ratio. The company locked in a fixed coupon of 1.9875% plus the margin via an interest-rate swap contract for about half of the term loan (initially $100 million and reducing to $79,785,000 over the term of the facility). With the initial margin at closing of 175 bps, this equates to an all-in rate at closing of 3.7375% for that portion of the facility.

As of the end of any fiscal quarter beginning with the fiscal quarter ended Feb. 28, the company must adhere with a consolidated adjusted interest coverage ratio of less than 2.00:1.00 for the four consecutive fiscal quarters ending on the last day of such fiscal quarter and a consolidated capitalization ratio of greater than 0.60:1.00.

The term loan will be repaid in 23 equal quarterly installments of $1.75 million each beginning June 30, with any remaining outstanding amounts and accrued interest to be paid on the maturity date, March 20, 2020. The company may make voluntary prepayments without penalty.

Union Bank, NA is the syndication agent, and BofA Merrill Lynch is the lead arranger and bookrunner. DVB Bank SE, Fifth Third Bank, Bank of the West, Comerica Bank, Branch Banking and Trust Co., Capital One Equipment Finance Corp., Credit Industriel ET Commercial, New York Branch, Columbia State Bank and Umpqua Bank are additional lenders.

About $125 million of the proceeds were used to refinance the principal and interest outstanding under two exiting senior term loans, the filing noted.

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

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