Class A Notes Achieve "AA" rating, a first for
Greenbrier
Attractive long-term, non-recourse financing
supports recurring revenue goal
LAKE OSWEGO, Ore.,
Nov. 20,
2023 /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 a follow-on offering of railcar
asset-backed securities ("ABS") securing long-term financing for
our leasing business.
GBX Leasing 2022-1 LLC, a wholly-owned special purpose
subsidiary of GBX Leasing, LLC, a wholly-owned subsidiary of
Greenbrier, issued an aggregate principal amount of
$178.5 million of its Series 2023-1
Class A and Class B Notes ("Notes") with a blended interest rate of
6.5% and a 21/2 year call feature. The Notes
are rated "AA" and "A" by S&P Global Ratings and have a
weighted average life of approximately 6.5 and 6.7 years,
respectively. The railcar securitization will be consolidated on
Greenbrier's balance sheet but is non-recourse to Greenbrier.
Greenbrier CEO and President Lorie L.
Tekorius stated, "We secured long-term, fixed-rate financing
at attractive rates with a call feature that provides us forward
flexibility to respond to a lower interest rate environment. This
financing is structured to keep our balance sheet strong while we
grow our lease fleet, a lynchpin to achieve our goal of increasing
recurring revenue. The disciplined building of a high-quality
railcar portfolio secured an "AA" rating on the Class A Notes, a
first for Greenbrier. This demonstrates the industry-leading
capabilities of our commercial and leasing teams. By working
together, each team member leveraged their respective abilities in
the railcar leasing and finance markets to achieve a superior
result. I commend all of them on this successful
collaboration."
About Greenbrier
Greenbrier, headquartered in Lake
Oswego, Oregon, is a leading international supplier of
equipment and services to global freight transportation markets.
Through its wholly-owned subsidiaries and joint ventures,
Greenbrier designs, builds and markets freight railcars in
North America, Europe and Brazil. We are a leading provider of freight
railcar wheel services, parts, maintenance and retrofitting
services in North America through
our maintenance services business unit. Greenbrier owns a lease
fleet of approximately 13,400 railcars that originate primarily
from Greenbrier's manufacturing operations. Greenbrier offers
railcar management, regulatory compliance services and leasing
services to railroads and other railcar owners in North America. Learn more about Greenbrier at
www.gbrx.com.
Forward-Looking Statements
This press release may contain "forward-looking statements"
within the meaning of U.S. federal securities laws, including
statements that are not purely statements of historical
fact. Greenbrier uses words, and variations of words, such as
"advance," "believe," "continue," "define," "enhance," "estimate,"
"expect," "future," "improve," "increase," "initiative,"
"progress," "project," "provide," "strategy," "target," "will," and
similar expressions to identify forward-looking statements. 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 might cause such a
difference include, but are not limited to, the following: an
economic downturn and economic uncertainty; inflation (including
rising energy prices, interest rates, wages and other escalators)
and policy reactions thereto (including actions by central banks);
disruptions in the supply of materials and components used in the
production of our products; the war in Ukraine and related events; and the COVID-19
pandemic, variants thereof, governmental reaction thereto, and
related economic disruptions (including, among other factors,
operations and supply disruptions and labor shortages). More
information on 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
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of the Company's most recently
filed periodic report on Form 10-K. Except as otherwise required by
law, the Company assumes no obligation and does not intend 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
management's opinions only as of the date hereof.
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SOURCE The Greenbrier Companies, Inc.
