Element Financial Corporation will purchase up to USD 1 billion of leased railcars from Dallas-based Trinity Industries.
The volume generated by the new four-year agreement signed between the two parties will be complemented by originations sourced through the Element’s direct origination channels.
“Our initial agreement with Trinity, which we signed in December 2013, gave us the opportunity to quickly build meaningful scale as a North American railcar lessor. Going forward, this new agreement gives us a reliable flow of leased railcars from Trinity that, together with the flexibi lity to diversify our fleet through our direct origination capabilities, will accommodate our plans to grow our rail book by approximately 25 percent in 2016 and to
keep the size this portfolio in step with Element’s optimal capital allocation plans,” said David McKerroll, President of Element’s rail and aviation verticals.
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