Trinity Industries, Inc. Announces Successful Refinancing of Outstanding Debt for Partially-owned Lease Subsidiaries and Provides Liquidity Update

Trinity Industries, Inc. (NYSE:TRN) (“Trinity” or the “Company”) announced today that its partially-owned lease subsidiaries TRIP Rail Holdings LLC (“TRIP Holdings”) and RIV 2013 Rail Holdings LLC (“RIV 2013”) have entered into agreements to refinance over $1.2 billion in outstanding debt. Proceeds from the newly issued debt will be used to fully repay and redeem existing notes and fund expenses related to the refinancing.

“We are pleased to announce the refinancing of the partially-owned lease subsidiaries’ capital structure,” said Eric Marchetto, EVP and Chief Financial Officer of Trinity. “The significance of refinancing over $1 billion in debt at historically low interest rates speaks to the attractiveness of the asset class and the depth of the capital markets for high-performing rail securitizations. We are also proud to be the first railcar lessor in North America to issue green bonds under Trinity’s leasing company Green Financing Framework, garnering new participation in the securitizations from firms with various ESG and sustainability mandates. These refinancings are part of Trinity’s strategic initiatives to improve our returns and drive shareholder value through lowering our cost of capital, and will result in the reduction of the Company’s cost of debt by 50 basis points. Trinity is the leading issuer of asset-back railcar securitizations, and this was an important financing for Trinity and our investment partners.”

As part of the refinancing, Trinity Rail Leasing 2012 LLC (“TRL 2012”), a subsidiary of RIV 2013, will be renamed TRP 2021 LLC ("TRP 2021"). TRP 2021 will issue an aggregate principal amount of $355 million of green secured railcar equipment notes at a blended coupon of approximately 2.13% and a weighted average life of approximately 5.5 years at closing. The transaction will have a loan to value of 73.5% and will be secured by 6,350 railcars and their associated operating leases. Upon closing, the proceeds are expected to redeem the TRL 2012 secured railcar equipment notes which had $349 million outstanding at March 31, 2021 and carried a 3.59% interest rate.

TRIP Rail Master Funding LLC (“TRMF”), a subsidiary of TRIP Holdings, will be renamed Triumph Rail LLC ("Triumph"). Triumph will also issue an aggregate principal amount of $560 million of green secured railcar equipment notes at a blended coupon of approximately 2.20% and a weighted average life of approximately 5.3 years at closing. The transaction will have a loan to value of 74.8% and will be secured by 11,004 railcars and their associated operating leases. Additionally, TRIP Railcar Co., LLC, another subsidiary of TRIP Holdings, has entered into a term loan agreement, and is expected to draw down approximately $330 million from its loan facility that will bear interest at LIBOR (or an alternate base rate) plus a facility margin of 1.85%. Together upon closing, the proceeds are expected to redeem TRMF’s secured railcar equipment notes, which had $877 million outstanding at March 31, 2021 and carried a blended average interest rate of 5.14%.