News

Virgin Trains USA, Morgan Stanley: $1.75B in PABs

Virgin Trains USA (formerly Brightline) has closed on $1.75 billion in private activity bonds (PABs) underwritten by Morgan Stanley and purchased by 67 different investors to help fund the company’s expansion from West Palm Beach, on the Florida East Coast Railway, to Orlando. Virgin described the closing as “one of the largest PAB transactions to date.”

MTS rolling out new Trolleys

As the San Diego Metropolitan Transit System (MTS) gets set to roll out the next generation of light rail vehicles (LRVs) for service on the UC San Diego Blue Line on April 20, MTS officials recently unveiled the first car of the new LRV series during a “Trolley Open House.”

Greenbrier acquiring ARI

In a transaction valued at $400 million, the Greenbrier Companies, Inc. (GBRX) has entered into an agreement to acquire the manufacturing business of American Railcar Industries (ARI) from ITE Management LP (ITE), the hedge fund that bought ARI from investor Carl Icahn in December 2018. GBX said the result will be “a larger U.S. railcar manufacturing footprint, adding ARI’s two manufacturing facilities in Arkansas. It will employ more U.S. workers at cost-competitive and flexible facilities, with a more-efficient delivery model throughout North America, due to lower transportation costs.”

Petroleum fuels gains

Continuing on the heels of last week’s trend, three of the 10 carload commodity groups posted a year-over-year increase—and total carloads were slightly up—but all other traffic declined, according to figures released on April 17 by the Association of American Railroads (AAR) for the week ended April 13.