Trinity Industries Leasing is prepping a $183.45 million railcar equipment securitization, according to a presale report from Standard and Poor's.
The Series 2013-1 notes are backed by a $661.425 million portfolio dubbed Trinity Rail Leasing 2012 LLC containing 7,201 railcars. This fleet portfolio also backs the $333.84 million series 2012-1 notes.
The pool benefits from including mostly young railcars: the average age of the railcars is slightly more than two years old. It is also diverse, containing tank and non-tank freight cars.
However, the majority of the leases are full-service, which S&P says exposes the transaction to the railcars' uncertain variable expenses, such as maintenance and servicing.
The transaction features one tranche of class A-1 notes, which S&P preliminarily rated 'A'.
Trinity Industries will be servicing the notes.
The deal is expceted to close next month.