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Greenbrier Acquires 100% Interest in GBX Leasing Joint Venture

January 04, 2023, 07:15 AM
Filed Under: Mergers & Acquisitions

The Greenbrier Companies, Inc. announced it acquired a 100 percent interest in GBX Leasing (GBXL), its railcar leasing joint venture with The Longwood Group. This furthers Greenbrier’s strategy to grow its lease fleet and expand its services offering.

Greenbrier acquired Longwood’s minority interest in GBXL’s portfolio of leased railcars, manufactured primarily by Greenbrier. GBXL now operates as a wholly owned subsidiary of Greenbrier. Since its inception in early 2021, GBXL has delivered stable and tax-advantaged cash flows designed in part to complement the more cyclical revenues derived from Greenbrier’s new railcar manufacturing. In turn, GBXL’s leased railcar portfolio led to its first-ever issuance of railcar asset-backed securities (ABS) in February 2022. Driven by high investor interest, the ABS notes were fully subscribed at issuance at a blended interest rate of 2.9 percent.

Greenbrier CEO and President Lorie Tekorius said, “Greenbrier has enjoyed a productive and beneficial relationship with Longwood in the development of our leasing business. I would like to thank Longwood and its CEO, D. Stephen Menzies, for offering strategic investment guidance and market assistance during GBXL’s nearly two years of operations. The formation of GBXL has plainly and demonstrably expanded Greenbrier’s value proposition for its customers and shareholders.”

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