Kroll Bond Rating Agency assigned preliminary ratings to Signal Rail I LLC, Series 2021-1, Class A and Class B notes issued by Signal Rail I LLC, a railcar securitization.

The issuer is a special purpose entity and a wholly-owned subsidiary of Signal Rail Holdings and has been structured to issue multiple series of notes, including Series 2021-1. All of the railcars in the portfolio and related leases are being purchased from Trinity Industries Leasing Company or one of three wholly-owned subsidiaries, including Trinity Rail Leasing Warehouse Trust, Trinity Rail Leasing 2017 LLC and Trinity Rail Leasing 2020 LLC. The equity in this transaction will be held by Signal Rail Holdings, which is a newly formed joined venture between investment funds advised by Wafra (90%) and Trinity Industries Leasing Company (10%).

The securitization is collateralized by a portfolio of 2,196 freight railcars with an aggregate adjusted value of $168.9 million (51.2% by value) and 1,386 tank railcars with an aggregate FMV of $160.7 million (48.8% by value). As of June 30, approximately 75% of the railcars are on full-service leases, 14.6% are on per diem leases and 10.4% are on net leases. There are no cars off-lease in this portfolio.