A wholly-owned subsidiary of Trinity Industries, Trinity Rail Leasing 2026 LLC, has entered into a new Term Loan Agreement and completed an initial funding of a $349.8 million term loan. The proceeds were used to acquire a portfolio of railcars and their related operating leases, as well as to refinance existing debt facilities.
Key Details
- Loan Amount: The initial principal is $349.8 million, with an accordion feature allowing for an additional $300.0 million in borrowing capacity.
- Terms & Maturity: The loan matures on October 19, 2031, and bears an interest rate of daily simple SOFR plus a margin of 1.30% per annum. The loan is secured by the acquired railcar portfolio.
- Use of Proceeds: Funds were used to acquire the railcar portfolio and to repay existing debt, including the full redemption of TRL-2019's Series 2019-2 Secured Railcar Equipment Notes, of which $280.9 million was outstanding.