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<< Rail News Home: Mechanical

2/27/2004    Freight News

Rail News: Mechanical

Trinity obtains BNSF's 6,000-hopper order, offers senior notes to generate working capital

On Feb. 26, Trinity Industries Inc. announced it received an order from Burlington Northern Santa Fe for 6,000 high-capacity covered grain hoppers to be delivered during the next four years. Subsidiary Trinity Rail Group will begin building the cars in the third quarter.

"Our rail-car backlog in North America had already grown to more than 12,000 at the end of 2003 — this order provides further evidence that the market for our products continues to improve," said Trinity Rail Group Chief Executive Officer Mike Flannery in a prepared statement.

Trinity's North American rail-car deliveries increased 33 percent during the fourth quarter compared with the third quarter and 101 percent compared with fourth-quarter 2002. Trinity officials expect the company to nearly double deliveries in 2004 compared with 2003. Currently, the car builder's backlog is at its highest level since March 2000.

Meanwhile, Trinity Industries announced plans to offer up to $300 million worth of senior notes, due 2014, in a private offering. The company would use proceeds to repay outstanding debt under its existing credit facility, fund manufacturing facility projects and provide working capital for Trinity Rail Group.

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