Greenbrier and Mitsubishi UFJ Lease & Finance $1bn agreement

Greenbrier and Mitsubishi UFJ Lease & Finance $1bn agreement


The Greenbrier Companies and Tokyo-based MUL have announced the execution of a Memorandum of Understanding (MOU) to substantially expand the parties’ existing commercial relationship in North America.

MUL intends to grow its portfolio from 5,000 railcars to a total of 25,000 railcars over the next four years. The MOU includes a multi-year purchase commitment by MUL for 6,000 newly-manufactured railcars from Greenbrier until 2020.

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MUL has also committed to obtain all its newly-manufactured railcars exclusively from Greenbrier until 2023.  In addition to the new equipment ordered, over the next few years, MUL will supplement its portfolio growth through a combination of lease syndications and used equipment owned and originated by Greenbrier.  The combined value of the transaction exceeds $1bn.

In 2014, Greenbrier and MUL collaborated on a railcar lease syndication and asset management partnership designed to establish MUL as a leading owner and lessor of railcar assets in North America.  Under this arrangement, Greenbrier has syndicated and sold to MUL nearly 5,000 new and used, leased railcars, which Greenbrier currently manages.

The MOU provides that the parties will form a new asset management service entity, owned 50% by each company, solely for railcars in the MUL fleet. The 5,000 cars currently managed by Greenbrier will be managed by this new entity.  Greenbrier will receive fee income from MUL related to its railcar asset management services.

For more information visit www.gbrx.com

24th April 2017