The Longwood Group Announces Railcar Leasing Joint Venture Inaugural ABS Financing

Rhea-AI Summary

The Longwood Group has launched its first railcar asset-backed securitization for GBX Leasing, a joint venture with Greenbrier, generating $323 million in Class A and B Notes. This financing, supported by $413 million in leased railcars and rated investment-grade, aims to bolster the growth of GBX Leasing's railcar portfolio. CEO D. Stephen Menzies highlighted the initiative's success, which exceeded initial investment expectations due to strong origination activity and secondary market acquisitions. The venture anticipates continued high investment levels in 2022.

Positive

• Successfully raised $323 million in asset-backed securitization.
• Strong investor interest reflects available capital to expand GBX Leasing.
• Exceeded initial investment expectations by more than doubling expected volume.

Negative

• None.

CHICAGO, Feb. 14, 2022 /PRNewswire/ -- The Longwood Group, LLC ("Longwood"), a Chicago-based asset management and advisory services firm, today announced its inaugural railcar asset-backed securitization and long-term financing for GBX Leasing, a special purpose subsidiary and joint venture between Longwood and The Greenbrier Companies, Inc. (NYSE:GBX, "Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets.  The financing ("GBXL 2022"), which offered in aggregate $323 million in Class A and B Notes, was securitized by $413 million in leased railcars and received investment-grade credit ratings from two rating agencies.

"We are extremely pleased with the completion of GBX Leasing's inaugural long-term financing which supports the continued growth of the leased railcar portfolio," said D. Stephen Menzies, Longwood's Chief Executive Officer, and Chairman and Chief Executive Officer of GBX Leasing.  "With the benefit of deep transaction expertise at Longwood and Greenbrier, GBX Leasing has demonstrated its ability to access the capital markets in a very competitive manner.  GBX Leasing more than doubled the expected investment volume in its first year of operation because of strong origination activity and a successful secondary market acquisition.  We expect to continue a high level of investment in 2022 through our committed long-term supply agreement with Greenbrier.  The strong response by investors to participate in our inaugural securitization speaks to the capital available to grow GBX Leasing." 

For additional information regarding the GBXL 2022 financing, click here. 

About The Longwood Group, LLC
The Longwood Group is an asset management and advisory services firm specializing in services to institutional investors and financial sponsors seeking investment in transportation equipment and services businesses.  Longwood uses its transportation industry experience, extensive asset knowledge, and financing expertise to identify and develop attractive proprietary investment opportunities for its financial partners.  For more information on The Longwood Group, please visit www.longwoodgrp.com. 

About Greenbrier
Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. 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. Learn more about Greenbrier at www.gbrx.com.

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SOURCE The Longwood Group

FAQ

What is the significance of the $323 million financing for GBX?

The $323 million financing represents GBX Leasing's inaugural asset-backed securitization, crucial for expanding its railcar portfolio.

How did GBX Leasing exceed its expected investment volume?

GBX Leasing exceeded expectations due to robust origination activity and success in acquiring from the secondary market.

What backing does the financing for GBX Leasing have?

The financing is backed by $413 million in leased railcars, which received investment-grade ratings.

Who are the partners in GBX Leasing?

GBX Leasing is a joint venture between Longwood Group and Greenbrier Companies.

What are the future prospects for GBX Leasing in 2022?

GBX Leasing expects to maintain high investment levels supported by a long-term supply agreement with Greenbrier.