FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


KBRA Assigns Preliminary Ratings to Trinity Rail 2021 LLC, Series 2021-1

June 18, 2021, 06:00 AM
Filed Under: Rail Transportation

Kroll Bond Rating Agency (KBRA) assigned preliminary ratings to Trinity Rail Leasing 2021 LLC, Green Secured Railcar Equipment Notes, Series 2021-1, Class A Notes and Class B Notes issued by Trinity Rail Leasing 2021 LLC (the “Issuer” or “TRL 2021-1”), a railcar leasing securitization. The Issuer is a special purpose entity and a wholly owned subsidiary of TRIP Rail Holdings LLC (“TRIP Rail”) and has been structured to issue multiple series of notes.

In January 2021, Trinity implemented a Green Financing Framework (“GFF”). The GFF is designed to allow TILC to issue various Green Financing Instruments (“GFI”), such as “Green Bonds.” TRL 2021-1 has been issued a pre-issuance review letter from an external verifier that this issuance is in alignment with the GFF. TRL 2021-1 is the third ABS transaction KBRA has rated, the first being TRP 2021-1 LLC, Series 2021-1, where the sponsor or an affiliated entity has
implemented and tested a GFF and has committed to provide public annual reports which would include metrics relating to the environmental impact of this issuance.

The securitization is collateralized by a portfolio of 2,638 tank railcars with an aggregate FMV of $278.7 million (67% by value) and 1,725 non-tank railcars with an aggregate adjusted value of $136.8 million (33% by value), (the “Portfolio Railcars”). As of March 31, 2021, approximately 88.3% of the railcars are on full service leases, 8.4% are per diem leases, and 3.3% are on net leases. There are no cars off-lease in this portfolio. The Issuer will be responsible for covering maintenance costs for the railcars in the portfolio that are under full service lease contracts.

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.