GBXL Becomes Wholly Owned Greenbrier Subsidiary

The Greenbrier Companies, Inc., on Jan. 3 reported acquiring 100% interest in GBX Leasing (GBXL), its railcar leasing joint venture with The Longwood Group.

Greenbrier and Longwood, a Chicago-based transportation equipment advisory and asset management firm, teamed on the railcar leasing joint venture in February 2021, with Greenbrier holding a 95% stake. It was formed to “acquire a minimum of $200 million of newly built and leased railcars in its first year of operations,” and serve high-credit quality railcar lessees, which require leases with mid-to-longer term maturities, Greenbrier reported in 2021. By Sept. 30, 2021, GBXL’s fleet comprised nearly 4,000 units and had a fair market value of $350 million—exceeding Greenbrier’s initial investment target for the venture by 75%.

GBXL, whose leased railcar portfolio is primarily Greenbrier-manufactured, will now operate as a wholly owned Greenbrier subsidiary, according to Greenbrier.

Since its launch in 2021, GBXL “has delivered stable and tax-advantaged cash flows designed in part to complement the more cyclical revenues derived from Greenbrier’s new railcar manufacturing,” reported Greenbrier, which noted that it completed in February 2022 the first offering of railcar asset-backed securities (ABS) for GBXL. “Driven by high investor interest, the ABS notes were fully subscribed at issuance at a blended interest rate of 2.9%,” according to Greenbrier.

“Greenbrier has enjoyed a productive and beneficial relationship with Longwood in the development of our leasing business,” Greenbrier President and CEO Lorie Tekorius said. “I would like to thank Longwood and its CEO, D. Stephen Menzies, for offering strategic investment guidance and market assistance during GBXL’s nearly two years of operations. The formation of GBXL has plainly and demonstrably expanded Greenbrier’s value proposition for its customers and shareholders.”