Greenbrier Successfully Completes Wagon Asset-Backed Securities Issuance
LAKE OSWEGO, Oregon., February 9, 2022 /PRNewswire/ — The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading international supplier of equipment and services to global freight transportation markets, today announced the completion of its first offering of railcar asset-backed securities (“ABS”) and long-term financing for GBX Leasing (“GBXL”), a joint venture between Greenbrier and The Longwood Group.
GBXL’s wholly-owned subsidiary, GBX Leasing 2022-1 LLC (“GBXL-2022”), issued an aggregate principal amount of $323.3 million of its Series 2022-1 Class A and Class B Notes (“Notes”) with a combined 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 rail car securitization will be consolidated on Greenbrier’s balance sheet but is without recourse against Greenbrier.
CEO and President of Greenbrier William A. Furman said, “The strong investor reaction produced excellent conditions for GBXL’s first asset-backed securitization. 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 debts associated with GBXL’s rental 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 flow from leasing strengthens Greenbrier’s integrated business model, allowing us to more fully capitalize on growing momentum in the North American freight railcar market. »
Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to the global freight transportation markets. Through its wholly owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and ocean barges in North America, Europe and Brazil. We are one of the leading providers of Freight Rail Car Wheels, Parts, Repair, Refurbishment and Retrofit services in North America through our wheels, repair and parts business unit. Greenbrier manages 445,000 railcars and provides railcar management, regulatory compliance and leasing services to railroads and other railcar owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars primarily from Greenbrier’s manufacturing operations. Together, GBXL and Greenbrier have a rental fleet of nearly 12,500 railcars. Learn more about Greenbrier at www.gbrx.com.
“SAFE HARBOUR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Greenbrier uses words such as “strengthen”, “capitalize “, “create”, “growth”, “momentum”, “positions”, “scale”, “will” and similar expressions to identify forward-looking statements. These forward-looking statements relate to a variety of matters, including, but not limited to, statements relating to the size of Greenbrier’s rental fleet over time, the railcar rental market and rental strategy, Greenbrier’s future cash flows and returns. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that could cause such a difference include, but are not limited to, the following: COVID-19, its variants, government response thereto, and related economic disruptions (including, among other factors, supply disruptions, inflation and interest rate increases) adversely impacting our business or our inability to lease railcars at satisfactory rates, or remarket leased railcars on favorable terms upon termination of the lease. Further information about potential factors that could cause our results to differ from our forward-looking statements is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Discussion and Analysis” sections. by Management of Financial Condition and Results of Operations” of the Company’s most recent periodic report filed on Form 10-K and subsequent reports on 10-Q. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of management only as of the date hereof.
SOURCE The Greenbrier Companies, Inc.