Vedder Thinking | News Vedder Price Counsels Client in Railcar Transaction Valued at More than $1.0 Billion
June 5, 2017
Vedder Price is pleased to announce that it represented Toyko-based Mitsubishi UFJ Lease & Finance Company Limited (MUL) in connection with a multi-faceted business alliance with The Greenbrier Companies, Inc. and its affiliates (GBX) which expands MUL’s existing North America rail leasing platform. Consistent with the parties' Memorandum of Understanding announced in April, the transactions, disclosed below, exceed $1 billion, making this one of the largest rail deals in the U.S. in 2017.
The transaction includes a multi-year purchase commitment by MUL for 6,000 newly-manufactured railcars from GBX, with deliveries continuing through 2020. In addition to the new equipment ordered, over the next several years, MUL has agreed to supplement its portfolio growth through a combination of lease syndications and used equipment originated and owned by GBX. The parties have also formed MUL Greenbrier Management Services, LLC, a new railcar management services joint venture owned 50% by each of MUL and GBX that will manage all railcars in the MUL fleet.
“We are proud to have partnered with MUL on this significant transaction,” said Jeffrey T. Veber, Global Transportation Finance Shareholder and member of the Vedder Price Board of Directors. “Our experienced deal team, comprised of members of both the Global Transportation Finance team and Finance & Transactions practice groups of Vedder Price, worked diligently to provide the best possible service to our client.” Michael E. Draz, Global Transportation Finance Shareholder who also led the deal team added, “We are delighted by the successful completion of this transaction and look forward to our continued partnership with MUL as they work together with GBX over the coming years.”
In addition to Mr. Veber and Mr. Draz, the Vedder Price deal team included Steven R. Berger, Michael J. Turgeon, Peter T. Wynacht, Joel R. Thielen, David Poulose and Nicole M. Smith.