Trinity Industries Leasing Co. (TILC) is sponsoring a $406.8 million railcar lease securitization, marketing railcar equipment notes secured by a portfolio of 5,770 units utilized by companies in the agricultural, energy, plastics and chemical industries.
Steam 2021-1 is a new series from the master trust of the Fort Worth, Tex.-based transportation firm, which pools the lease receivables and unit values of 2,941 tank railcars and 2,829 non-tank railcars.
The tank and freight cars are leased out at an average monthly rate of $741, a much higher rate than other recent Trinity railcar deals where the range was $628 to $713. The weighted average remaining term leases are 3.8 years.
Nearly all (84% of the units) are tethered to full-service leases that require TILC to fund maintenance, taxes and other costs for the railcars. TILC manages leases on its own tank and freight cars as well as those owned by third parties.
The railcars, with an average age of 7.2 years, have a total value of $535.3 million, according to a presale report from Kroll Bond Rating Agency.
Kroll has assigned a preliminary A rating to the single Class A notes tranche being offered to investors. The rating is in line with recent securitizations sponsored by TILC.
