Trinity Industries, Inc. Announces Notice of Redemption of 3⅞% Convertible Subordinated Notes
Trinity Industries, Inc. (NYSE:TRN) (the “Company”) today announced that it has given notice of its election to redeem all of
the outstanding 3⅞% Convertible Subordinated Notes due 2036 (CUSIP No. 89 6522 AF 6) (the “Notes”) on June 1, 2018 (the “Redemption
Date”) pursuant to the terms of the Indenture governing the Notes. The outstanding Notes will be redeemed for cash equal to 100% of
the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, Redemption Date. The aggregate principal
amount of Notes outstanding is approximately $449.4 million.
In addition, the Company has notified Wells Fargo Bank, National Association, as trustee, that pursuant to the Indenture, the
Notes have become convertible as a result of the Company’s election to redeem the Notes. Subject to the terms of the Indenture and
the Notes, holders may convert their Notes at any time until 5:00 p.m., New York City time, on May 30, 2018. The current conversion
rate of the Notes is 41.4390 shares of the Company’s common stock per $1,000 principal amount of the Notes. Upon conversion, the
Company will deliver to the holders in respect of each $1,000 principal amount of Notes being converted a “settlement amount,” as
defined in the Indenture governing the Notes, equal to the sum of the daily settlement amount for each for the 20 consecutive
trading days of the cash settlement averaging period. Although the Company has the option to make the conversion payment in cash
and shares of the Company’s common stock (or cash in lieu of some or all of the shares of common stock), the Company intends to
make the entire conversion payment with respect to all Notes converted solely in cash. The Company currently expects to fund the
redemption and conversion payments through a combination of cash on hand and the proceeds from one or more debt financing
transactions by the Company on a non-recourse basis.
COMPANY DESCRIPTION
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.
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
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