DALLAS--(BUSINESS WIRE)--
Today, Trinity Industries, Inc. (NYSE: TRN), through its wholly-owned
subsidiary, TrinityRail Asset Management Company, LLC (“TRAMCo”)
announced the extension of its strategic railcar alliance with Element
Financial Corporation (TSX:EFN) (“Element”), one of North America's
leading equipment finance companies. Under the extended alliance,
Element is expected to acquire up to an additional $1 billion of leased
railcars during the period of 2016 through 2019.
Similar to past purchases by Element under the existing alliance, the
portfolio is expected to consist of new railcars from Trinity’s leased
railcar backlog and existing leased railcars from the Trinity Industries
Leasing Company (“TILC”) fleet; the portfolio may also include secondary
market purchases of leased railcars identified by Trinity and Element.
TILC will continue to act as exclusive servicer for the leased railcars
purchased by Element under the alliance, maintaining its relationship
with the individual lessees, and receive management fees accordingly.
At this time, the amount of expected sales to Element in each year of
the extended alliance has not been determined. Consistent with the
existing alliance, sales are expected to be reported in both the Rail
and Leasing and Management Services Groups. Macquarie Capital advised
Trinity on this alliance.
“We believe the long-term extension of our successful alliance with
Element further strengthens our unique railcar investment vehicle
platform,” said D. Stephen Menzies, Trinity Industries, Inc. Senior Vice
President and the Group President responsible for Trinity’s railcar
manufacturing and leasing businesses. “In recent years, the addition of
institutional investors and strategic partners, like Element, enhance
our financial flexibility to further grow our managed lease fleet,”
added Mr. Menzies.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses,
which provide products and services to the energy, transportation,
chemical, and construction sectors. 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. For more
information, visit: www.trin.net.
Some statements in this release, which are not historical facts, are
“forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements about Trinity's estimates, expectations, beliefs, intentions
or strategies for the future, and the assumptions underlying these
forward-looking statements. Trinity uses the words “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,”
“will,” “should,” “guidance” and similar expressions to identify these
forward-looking statements. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
historical experience or our present expectations. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see “Risk
Factors” and “Forward-Looking Statements” in the Company's Annual Report
on Form 10-K for the most recent fiscal year.
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Trinity Industries, Inc.
Investor Contact:
Jessica L.
Greiner, 214-631-4420
Director of Investor Relations
or
Media
Contact:
Jack Todd, 214-589-8909 or 214-589-2567
Vice
President, Public Affairs
Source: Trinity Industries, Inc.