The Greenbrier Companies, a supplier of equipment and services to the global freight transportation markets, completed a follow-on offering of railcar asset-backed securities, securing long-term financing for its leasing business.
GBX Leasing 2022-1 LLC, a wholly-owned special purpose subsidiary of GBX Leasing, a wholly-owned subsidiary of Greenbrier, issued an aggregate principal amount of $178.5 million of its Series 2023-1 Class A and Class B Notes with a blended interest rate of 6.5% and a 2.5-year call feature. The notes are rated AA and A by S&P Global Ratings and have a weighted average life of approximately 6.5 and 6.7 years, respectively. The railcar securitization will be consolidated on Greenbrier’s balance sheet but is non-recourse to Greenbrier.
“We secured long-term, fixed-rate financing at attractive rates with a call feature that provides us forward flexibility to respond to a lower interest rate environment,” Lorie L. Tekorius, CEO and president of Greenbrier, said. “This financing is structured to keep our balance sheet strong while we grow our lease fleet, a lynchpin to achieve our goal of increasing recurring revenue. The disciplined building of a high-quality railcar portfolio secured an AA rating on the Class A notes, a first for Greenbrier. This demonstrates the industry-leading capabilities of our commercial and leasing teams. By working together, each team member leveraged their respective abilities in the railcar leasing and finance markets to achieve a superior result. I commend all of them on this successful collaboration.”
