Greenbrier Acquires ~3,600 Railcars To Advance Leasing Strategy

Greenbrier Acquires ~3,600 Railcars To Advance Leasing Strategy
  • Greenbrier Companies Inc GBX has acquired more than 3,600 railcars, a portion of which will be held in GBX Leasing (GBXL).
  • GBXL, a special purpose subsidiary owned ~95% by Greenbrier, was formed to acquire a minimum of $200 million of newly built and leased railcars in its first year of operations.
  • As of September 30, 2021, GBXL's fleet totals nearly 4,000 units with a fair market value of $350 million, exceeding Greenbrier's initial investment target for the venture by 75%. 
  • "By providing tax-advantaged cash flows, lease fleet investments reduce Greenbrier's exposure to the inherent cyclicality of freight transportation equipment manufacturing," commented Greenbrier CEO and Chairman William A. Furman.
  • Greenbrier held cash and equivalents of $636.89 million as of May 31, 2021.
  • Price Action: GBX shares closed higher by 2.6% at $44.95 on Tuesday.

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