The Greenbrier Companies and Mitsubishi UFJ Lease & Finance (MUL) announced execution of a memorandum of understanding (MOU) to substantially expand the parties’ existing commercial relationship in North America. Mitsubishi UFJ Lease & Finance intends to grow its portfolio from 5,000 railcars to a total of 25,000 railcars over the next four years. The MOU includes a multi-year purchase commitment by Mitsubishi for 6,000 newly-manufactured railcars from Greenbrier through 2020. Further, Mitsubishi has committed to obtain all its newly-manufactured railcars exclusively from Greenbrier through 2023.
In addition to the new equipment ordered, over the next few years, Mitsubishi will supplement its portfolio growth through a combination of lease syndications and used equipment owned and originated by Greenbrier. The combined value of the transaction exceeds USD 1 billion.
In 2014, Greenbrier and Mitsubishi collaborated on a railcar lease syndication and asset management partnership designed to establish Mitsubishi as a leading owner and lessor of railcar assets in North America. Under this arrangement, Greenbrier has syndicated and sold to Mitsubishi nearly 5,000 new and used, leased railcars, which Greenbrier currently manages.
The MOU provides that the parties will form a new asset management service entity, owned 50% by each company, solely for railcars in the Mitsubishi fleet. The 5,000 cars currently managed by Greenbrier will be managed by this new entity. Greenbrier will receive fee income from Mitsubishi related to its railcar asset management services.
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