The Greenbrier Companies and Tokyo-based Mitsubishi UFJ Lease & Finance (MUL) completed agreements to expand their existing commercial relationship in North America consistent with the parties' Memorandum of Understanding announced in April. MUL intends to grow its portfolio from 5,000 railcars to a total of 25,000 railcars over the next four years. As part of these growth plans, MUL has entered a multi-year purchase commitment for 6,000 newly-manufactured railcars from Greenbrier, with deliveries commencing during the fourth calendar quarter of 2017 and continuing through 2020. Further, MUL will obtain all its newly-manufactured railcars exclusively from Greenbrier through 2023. In addition to the new equipment ordered, over the next several years, MUL will supplement its portfolio growth through a combination of lease syndications and used equipment originated and owned by Greenbrier. The combined value of these transactions exceeds $1 billion.
The parties have also formed MUL Greenbrier Management Services, LLC, a new railcar management services entity owned 50% by each company that will solely manage all railcars in the MUL fleet. Greenbrier will receive continuing fee income related to the ongoing railcar asset management services provided for the MUL fleet.
"Greenbrier is pleased to extend its business relationship with MUL with these recently signed agreements and the formation of MUL Greenbrier Management Services. This expanded relationship with MUL demonstrates our earned reputation of providing tailored solutions to our customers. We take pride in the series of transactions we have completed with our friends at MUL and look forward to our continuing work together," said William A. Furman, Chairman and CEO.
MUL President & CEO Tadashi Shiraishi said, "MUL has set an ambitious target to increase MUL's market share to a level that places it among North America's top 8 leading operating lessors of railcars. We value Greenbrier's ability to build high-quality freight railcars and assist MUL with high-value railcar management services to support MUL's rapidly expanding fleet."