The Greenbrier Companies acquired more than 3,600 railcars, a portion of which will be held in GBX Leasing, a recently formed special purpose subsidiary that is approximately 95% owned by Greenbrier.
GBX Leasing was formed to acquire a minimum of $200 million of newly built and leased railcars in its first year of operations. GBX Leasing serves high credit quality railcar lessees that require leases with mid-to-longer term maturities. As of Sept. 30, GBX Leasing’s fleet totaled nearly 4,000 units with a fair market value of $350 million, exceeding Greenbrier’s initial investment target for the venture by 75%. The fleet was assembled through a combination of lease originations on Greenbrier-built railcars and the 3,600-railcar acquisition. Railcars in the GBX Leasing fleet transport a variety of commodities and serve a range of industries, including agriculture, energy, petrochemical and consumer goods.
“By providing tax-advantaged cash flows, lease fleet investments reduce Greenbrier’s exposure to the inherent cyclicality of freight transportation equipment manufacturing,” William A. Furman, CEO and chairman of Greenbrier, said. “The recent railcar acquisition advances Greenbrier’s strategy to increase the scale of our lease fleet assets. The mix of railcar types included in the acquisition is an excellent fit for our growing GBXL portfolio. The fleet allows us to better serve our existing customers and engage market participants previously unaddressed by Greenbrier. Additionally, the transaction will generate attractive returns, delivering further value to our shareholders.”
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