Vedder Thinking | News Vedder Price Assists Trinity Industries, Inc. in Forming Billion-Dollar Railcar Leasing Joint Venture
May 10, 2013
Vedder Price is pleased to announce its representation of client, Trinity Industries, Inc., in their creation of RIV 2013 Rail Holdings LLC (RIV), a joint venture with Napier Park Railcar Lease Fund LLC (Napier Park Fund), an institutional investment fund, and an additional co-investor in Napier Park Fund, that will provide railcar leasing services in North America. RIV 2013 intends to acquire approximately $1 billion worth of railcars manufactured by Trinity Rail Group, LLC. Trinity Industries Leasing Company (TILC), the Napier Park Fund, and the co-investor have also contributed equity capital to complete the long-term re-capitalization of TRIP Rail Holdings LLC, a joint venture which holds an existing portfolio of 14,455 railcars purchased from Trinity and TILC over a two-year period from 2007 through 2009.
In a news release issued by Trinity Industries on May 7, the Dallas, TX-based company states that “this joint venture allows Trinity to further grow its leasing platform and maintain its core relationship with its customers, while reducing the amount of capital investment required to grow the lease fleet.”
Jack Bycraft, Vedder Price Shareholder and lead attorney for Trinity stated, “We are pleased to have worked with Trinity on the formation of RIV and the long-term capitalization of TRIP. TRIP and RIV provide Trinity with structurally innovative financing vehicles.”
In addition to Mr. Bycraft, the Vedder Price team representing Trinity Industries in all aspects of the joint venture and related railcar portfolio acquisitions and financings included Shareholders Dalius Vasys and Timothy O’Donnell and Associates Christopher Barrett, Clay Thomas and Michael Draz, among others.