The Greenbrier Companies, a supplier of equipment and services to freight transportation markets, completed its first offering of railcar asset-backed securities and long-term financing for GBX Leasing, a joint venture between Greenbrier and The Longwood Group.

GBX Leasing’s wholly owned subsidiary, GBX Leasing 2022-1, issued an aggregate principal amount of $323.3 million of its Series 2022-1 Class A and Class B Notes with a blended interest rate of 2.9%. The notes have a weighted average life of approximately six years. The transaction is secured by nearly 4,500 railcars with a fair market value of $413 million and their associated operating leases. The railcar securitization will be consolidated on Greenbrier’s balance sheet but is non-recourse to Greenbrier.

“The strong response from investors produced excellent terms for GBXL’s first asset-backed securitization,” William A. Furman, CEO and chairman of Greenbrier, said. “The quality of this transaction demonstrates the respect and confidence engendered by Greenbrier’s leasing capabilities and the current strength of railcar securitizations in the debt market. All debt associated with GBXL’s leasing warehouse will be extinguished with the proceeds of this financing. This positions GBXL for robust fleet growth through 2022, creating scale for our leasing strategy going forward. Stable cash flows from leasing bolster Greenbrier’s integrated business model, allowing us to more fully capitalize on growing momentum in the North American freight railcar market.”