Trinity units plan $915 million green secured railcar equipment notes

By Devika Patel

Knoxville, Tenn., June 1 – Trinity Industries Inc. reported that two subsidiaries plan to issue $915 million of green secured railcar equipment notes, according to a press release.

TRP 2021 LLC, which will be the new name of subsidiary Trinity Rail Leasing 2012 LLC, plans to sell $355 million of green secured railcar equipment notes at a blended coupon of approximately 2.13% and a weighted average life of approximately 5.5 years.

The debt will be secured by 6,350 railcars and their associated operating leases.

Also, Triumph Rail LLC, which will be the new name of subsidiary TRIP Rail Master Funding LLC, plans to sell $560 million of green secured railcar equipment notes at a blended coupon of approximately 2.2% and a weighted average life of approximately 5.3 years.

Additionally, TRIP Railcar Co., LLC, another subsidiary, has entered into a term loan agreement, and is expected to draw down approximately $330 million from its loan facility that will bear interest at Libor plus 185 basis points.

Settlement is expected June 15.

Proceeds from the TRP 2021 notes will be used to redeem the TRL 2012 secured railcar equipment notes which had $349 million outstanding at March 31 and carried a 3.59% coupon.

Trinity is a Dallas-based provider of products and services to the industrial, energy, transportation and construction sectors.

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