Trinity Industries, Inc. (NYSE:TRN) today announced that its indirect
wholly-owned subsidiary, Trinity Rail Leasing VI LLC (“TRL VI”), repaid
in full approximately $340 million of non-recourse promissory notes
(“the Notes”) in May. TRL VI is a wholly-owned subsidiary of Trinity
Industries Leasing Company (“TILC”). The Notes were issued by TRL VI in
2008 and secured by a diversified portfolio of leased railcars and
certain cash reserves. The Notes had an effective interest rate of
5.63%, after consideration of interest rate hedges. Per the original
terms of the Notes, the borrowing margin was scheduled to increase by
0.50% in May.
As previously indicated on its first quarter 2015 earnings conference
call, the Company anticipated repaying the Notes ahead of scheduled
maturity to reduce financing costs and create flexibility to use the
portfolio of leased railcars in future financings or sales to
institutional investors.
The Company has partially refinanced the Notes repayment with a $250
million borrowing under TILC’s warehouse facility, which was recently
renewed and increased in April from $475 million to $1 billion. The
initial effective interest rate on the warehouse borrowing is expected
to be 1.95%. This refinancing was included in the Company’s most recent
earnings guidance.
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,” 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
“Forward-Looking Statements” in the Company's Annual Report on Form 10-K
for the most recent fiscal year.
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