Greenbrier’s $175 million seven-year convertible senior notes talked at 3.25%-3.75%, up 30%-35%

By Stephanie N. Rotondo

Seattle, Jan. 31 – The Greenbrier Cos. Inc.’s $175 million offering of convertible senior notes due 2024 were being talked at a yield of 3.25% to 3.75% and an initial conversion premium of 30% to 35%, according to a market source.

The deal was first announced on Monday. Pricing is expected after Tuesday’s close.

Goldman Sachs & Co. and BofA Merrill Lynch are the joint bookrunners.

The Rule 144A deal includes a $26.25 million over-allotment option.

Conversions will be settled with common stock, cash, or a combination.

The paper is not putable.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions of or investments in complementary businesses and products or the repayment or repurchase of some debt.

Greenbrier is a Lake Oswego, Ore.-based supplier of equipment and services to the freight rail transportation markets.

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