DALLAS--(BUSINESS WIRE)--
Trinity Industries, Inc. (NYSE:TRN) (“Trinity”) today reported that its
wholly-owned subsidiaries, Trinity Industries Leasing Company ("TILC")
and Trinity Rail Leasing 2018 LLC, ("TRL-2018") closed a two-tranche,
railcar asset-backed securitization in the aggregate amount of $482.5
million with a blended coupon of approximately 4.41% and a weighted
average life of approximately 8 years. The transaction is secured by
7,090 railcars, with a fair-market value of $621.6 million, and their
associated operating leases. The obligations of the equipment notes are
non-recourse to Trinity and TILC.
Net proceeds received from the transaction will be used to repay a
portion of the conversion settlement value of Trinity’s $449.3 million
convertible subordinated notes that were recently called for redemption
at par on June 1, 2018. Holders of approximately $448.5 million
aggregate principal amount of the notes submitted notices for conversion
of their notes prior to the conversion deadline of May 30, 2018. The
aggregate settlement amount of the notes submitted for conversion, with
settlement dates occurring on various dates between May 30, 2018 and
July 3, 2018, cannot be determined at this time; however, the aggregate
settlement amount will exceed the net proceeds from the asset-backed
securitization.
“We were pleased with the high level of investor interest in the
TRL-2018 secured railcar equipment notes offering and our ability to
execute the transaction with favorable terms and conditions,” said James
E. Perry, Senior Vice President and Chief Financial Officer for Trinity
Industries, Inc. “The net proceeds from the issuance facilitates the
redemption of our convertible subordinated notes ahead of the Company’s
planned spin-off of its infrastructure-related businesses in the fourth
quarter of 2018.”
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns complementary market-leading
businesses providing products and services to the energy, chemical,
agriculture, transportation, and construction sectors, among others.
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 redemption and conversion payments options
and associated sources and forms of any payments, estimates,
expectations, beliefs, intentions or strategies for the future, and the
assumptions underlying these forward-looking statements. Trinity uses
the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,”
“intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,”
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:
Preston
Bass, 214-631-4420
Director, Investor Relations
or
Media
Contact:
Jack Todd, 214-589-8909
Vice President, Public
Affairs
Source: Trinity Industries, Inc.