The Greenbrier Companies, Inc. announced the completion of its first offering of railcar asset-backed securities (ABS) and long-term financing for GBX Leasing (GBXL), a joint venture between Greenbrier and The Longwood Group.

GBXL’s wholly owned subsidiary GBX Leasing 2022-1 LLC (GBXL-2022) issued an aggregate principal amount of $323.3 million of its Series 2022-1 Class A and Class B Notes (Notes) with a blended interest rate of 2.9 percent. The Notes have a weighted average life of approximately six years. The transaction is secured by nearly 4,500 railcars with a fair market value of $413 million and their associated operating leases. The railcar securitization will be consolidated on Greenbrier’s balance sheet but is non-recourse to Greenbrier.

Greenbrier CEO and Chairman William A. Furman said, “The strong response from investors produced excellent terms for GBXL’s first asset-backed securitization. The quality of this transaction demonstrates the respect and confidence engendered by Greenbrier’s leasing capabilities and the current strength of railcar securitizations in the debt market. All debt associated with GBXL’s leasing warehouse will be extinguished with the proceeds of this financing. This positions GBXL for robust fleet growth through 2022, creating scale for our leasing strategy going forward. Stable cash flows from leasing bolster Greenbrier’s integrated business model, allowing us to more fully capitalize on growing momentum in the North American freight railcar market.”

Greenbrier, headquartered in Lake Oswego, OR, is an international supplier of equipment and services to global freight transportation markets. Greenbrier manages 445,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier’s manufacturing operations. Together, GBXL and Greenbrier own a lease fleet of nearly 12,500 railcars.