Greenbrier Completes Railcar Asset-Backed Securities Issuance
GBX Leasing 2022-1 LLC, described as “an indirect wholly owned special purpose subsidiary of Greenbrier,” issued an aggregate principal amount of $300 million of its Series 2026-1 Class A and Class B Notes (Notes) with a blended interest rate of 5.2% and a 2-1/2 year call feature, according to Lake Oswego, Ore.-based Greenbrier. The Notes are said to be rated “AA” and “A” by S&P Global Ratings; to have “weighted average lives” of approximately 6.7 and 7.0 years, respectively; and “are secured by railcars and associated operating leases.” The securitization will be consolidated on Greenbrier’s balance sheet but is described as “non-recourse” to Greenbrier, the company reported.
Greenbrier also completed a railcar asset-backed securities issuance in 2023; its first was in 2022.
Greenbrier designs, builds, and markets freight railcars in North America, Europe, Brazil, and the Middle East. It is also a provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America; owner of a lease fleet comprising approximately 17,000 railcars that originate primarily from its manufacturing operations; and provider of railcar management, regulatory compliance, and leasing services to railroads and other railcar owners in North America.
“The strong demand from investors for this ABS issuance reflects continued market confidence in the performance of Greenbrier’s railcar portfolios, supported by stable utilization and predictable cash flows,” Greenbrier President and CEO Lorie L. Tekorius said. “This transaction’s favorable terms indicate the durability of our manufacturing platform and support for our disciplined long‑term strategy. We appreciate the ongoing commitment from our financing partners as we grow our business and invest in our railcar fleet.”
