Trinity Industries Inc. priced its first-ever railcar lease securitization last week, a $177 million series 2003-1 transaction through the sole lead of Credit Suisse First Boston. Offered in the 144A market, the fixed-rate single-tranche offering, with an 11-year average life, priced to yield 80 basis points over interpolated swaps (see deal terms in scorecards p.38).

In an environment when infrequent issuers of off-the-run assets, sporting below investment-grade ratings, come under heavy investor scrutiny, this offering went surprisingly well. This was thanks in part to a full Ambac surety wrap. Parent company and seller/servicer Trinity Industries is rated Ba2' by Moody's Investors Service and BB' by Standard & Poor's.

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