The Greenbrier Companies has acquired a 100% interest in GBX Leasing (GBXL), its railcar leasing joint venture with the Longwood Group, strengthening its 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.
“Greenbrier has enjoyed a productive and beneficial relationship with Longwood in the development of our leasing business. The formation of GBXL has plainly and demonstrably expanded Greenbrier’s value proposition for its customers and shareholders,” Greenbrier CEO and President Lorie Tekorius said.
Since its establishment in early 2021, GBX Leasing 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 in February 2022. Driven by high investor interest, the ABS notes were fully subscribed at issuance at a blended interest rate of 2.9%.
Greenbrier Companies announced that in the first fiscal quarter ended November 30, 2022, it has leased 2,300 railcars. The company is developing its leasing platform and has increased the owned fleet to 14,100 units. Based on current trends and production schedules, Greenbrier expects to build and capitalise into the lease fleet approximately 2,000 units in fiscal year 2023.
In the first fiscal quarter, its Leasing & Management Services business increased the revenues to USD 46 million with a fleet utilisation of 98.4%.
The Longwood Group is a Chicago based advisory and asset management firm created in 2018 to provide services to institutional investors and financial sponsors seeking to make investment in leased transportation equipment.
Greenbrier manages 408,000 railcars and offers railcar management, regulatory compliance services and leasing services to railway companies and other railcars owners in North America.