By Lisa Kerner
Charlotte, N.C., May 12 - A subsidiary of TRIP Rail Holdings LLC acquired a $388 million portfolio of existing leased railcars from Trinity Industries Leasing Co.
The purchase was financed with the issuance of $336 million of long-term, asset-backed debt and $73 million of previously committed equity capital, according to a company news release.
The newly issued debt has a weighted average life of 8.2 years and a blended coupon of about 3.8% at closing. It was issued by an existing subsidiary of TRIP and is secured by the subsidiary's fleet of railcars and their associated operating leases.
According to the release, the obligations are nonrecourse to Trinity Industries, Inc., Trinity Industries Leasing and TRIP. Trinity Industries Leasing will act as servicer.
Trinity Industries, based in Dallas, is a diversified industrial company that owns businesses that provide products and services to the industrial, energy, transportation and construction sectors. TRIP is 42%-owned by Trinity Industries Leasing.
| Issuer: | Subsidiary of TRIP Rail Holdings LLC
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| Issue: | Asset-backed debt
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| Amount: | $336 million
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| Coupon: Blended at about 3.8%
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| Maturity: | Average life of 8.2 years
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| Servicer: Trinity Industries Leasing Co.
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