The Andersons Inc., an Ohio-based agribusiness, raised roughly $86.4 million through a railcar lease securitization. The deal funds the acquisition of three fleets of railcars operated in three countries - Mexico, Canada and the U.S. - by three corresponding newly created subsidiaries of the Andersons Rail Group. The Andersons will act as servicer.
Each of the subsidiaries of the Andersons is a co-seller to the securitization, issuing its interests in the acquired railcars and the cash flows tied to the leases through three SPEs, called NARCAT (U.S.), NARCAT Mexico, and CARCAT (in Canada). These then issue the interests into a separate trust, called TOP CAT, which sells notes to the investor group. The transaction is broken into four parts, three A classes and a B class (see scorecard p. 41, 2/16/04). MBIA wraps the top three classes of the four-part deal. The A-3 class is structured to suit Canadian investors, and is paid by the CARCAT cash flow exclusively (unless the MBIA policy is drawn), and will be sold only in that jurisdiction.