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The Greenbrier Cos. Inc. today announced plans to form GBX Leasing, a new leasing joint venture with The Longwood Group to develop an owned portfolio of leased rail cars primarily to be built by Greenbrier.
Longwood is a Chicago-based transportation equipment advisory and asset management firm.
GBX Leasing will acquire about $200 million worth of newly built and leased rail cars annually from Greenbrier. The initial portfolio for GBX Leasing has been substantially identified from leased rail cars on Greenbrier's balance sheet or in its backlog. The initial equity investment is tax-advantaged, company officials said in a press release.
"Today's announcement is a logical bolt-on to Greenbrier's leasing platform and commercial strategy," said Greenbrier Chief Executive Officer and Chairman William Furman. "The rail car portfolio built by GBX Leasing will create a new annuity stream of tax-advantaged cash flows while reducing Greenbrier's exposure to the new rail-car order and delivery cycle. This move bolsters Greenbrier's value proposition for its customers and shareholders."
Greenbrier will own about 95% of GBX Leasing, with the balance held by Longwood.
Longwood CEO D. Stephen Menzies will serve as GBX Leasing's chairman and CEO.