Dallas-based Trinity Industries Inc.'s wholly owned subsidiary, Trinity Rail Leasing VI LLC (TRL VI), has issued $572.2 million of promissory notes, secured by a portfolio of railcars, operating leases thereon, and certain cash reserves. The notes are non-recourse to Trinity Industries, and the proceeds are being used to repay a portion of Trinity's warehouse facility and to finance unencumbered railcars on Trinity's balance sheet. The interest rate on the notes was fixed through interest rate hedges.
‘We are pleased to complete this financing, especially in light of the current credit markets,’ says William A. McWhirter, Trinity's senior vice president and chief financial officer. ‘TRL VI provides us with the capital to continue the growth of our railcar lease fleet. Our proven ability to finance railcar leases in the capital markets allows us to continue to serve our customers' leasing needs.’
Trinity reports its financial results in five principal business segments: the rail group, the railcar leasing and management services group, the inland barge group, the construction products group and the energy equipment group.
SOURCE: Trinity Industries Inc.