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Rail News: Mechanical

The Andersons assumes ownership of all Railcar Ltd./Progress Rail rolling stock


It took nearly a year, but The Andersons Inc. now has acquired all rolling stock and leasing assets from Railcar Ltd. and Progress Rail Services Corp.

Completing a deal arranged in March 2003, The Andersons recently obtained 48 locomotives, 6,700 rail cars and contracts to manage an additional 2,600 cars for third-party investors. Most assets are under lease in the United States, Canada and Mexico.

The assets will be owned by several subsidiaries under TOP CAT Holding Co. — a newly formed limited liability company that counts The Andersons as its sole equity investor — and managed by The Andersons' Rail Group.

Brokered by Quadrant Financial Group L.L.C., the deal was financed by $86.4 million in notes underwritten by BB&T Capital Markets, BMO Nesbitt Burns Inc. and CapStone Investments.

"[Our] experience combined with an upward trend in the rail-car market makes this a very good fit for us," said The Andersons President and Chief Executive Officer Mike Anderson in a prepared statement.

The deal enables Progress Rail to concentrate on its core rail component supply and maintenance service businesses, said President and CEO Billy Ainsworth.

Contact Progressive Railroading editorial staff.

More News from 2/16/2004