Trinity Industries has teamed up with Napier Park Railcar Lease Fund and an additional co-investor, who also invested in the Napier Park Fund, to create RIV 2013 Rail Holdings, a joint venture that will provide railcar leasing services in North America.
RIV 2013 will acquire about $1 billion of railcars, mainly comprising new railcars manufactured by Trinity Rail Group and existing railcars from Trinity Industries Leasing Company or one of its subsidiaries, allowing Trinity to expand its leasing platform, while reducing the amount of capital investment required to expand the lease fleet.
TILC, the Napier Park Fund and the co-investor have also contributed equity capital to complete the long-term capitalization of TRIP Rail Holdings, which holds an existing portfolio of 14,455 railcars purchased from Trinity and TILC over a two-year period from 2007 through 2009.
“Gaining access to this new investor base of long-term equity capital provides Trinity with a great deal of financial flexibility,” said Timothy R. Wallace, Trinity’s chairman, CEO and president. “In addition, we see this as a business model that can be replicated, making it an important element of our broader strategy to grow our leasing platform.”