Trinity Industries Leasing Co. is planning to issue $354.98 million in green bonds, its second railcar-lease securitization since implementing its green-financing framework in January.
Triumph Rail LLC, Series 2021-2 will include a $338.89 million Class A tranche with preliminary A ratings from Kroll Bond Rating Agency and S&P Global Ratings. Also being issued is a $16.08 million tranche of notes with that are rated BBB by both KBRA and S&P.
The bonds are being issued by Triumph Rail LLC, a special purpose entity and subsidiary of TRIP Rail Holdings. It is the second series of the year through the master trust, which the company formed in 2011 originally as TRIP Rail Master Funding LLC.
The Triumph Rail trust was renamed after Trinity established its green-financing framework, in which it is eligible to issue ABS bonds as green instruments under the green-bond principles of the International Capital Market Association.
Trinity’s railcar collateral qualifies as an eligible green asset, since freight transportation serves as a lower carbon-emissions alternative to big-rig trucking for land-based goods transport.
The portfolio includes 3,570 tank railcars and 3,218 non-tank cars, with a fair market value of $474.8 million.
About 87.9% of the railcars are on full-service leases, 2.8% are on per diem leases and 1.3% are on net leases. The remaining 7.9% are off lease.
Trinity is responsible for maintenance costs for the railcars under full-service leases in the portfolio.
Trinity earlier this month closed on its first series of green bonds issued by the trust in a $355 million transaction.
