KBRA Assigns Preliminary Ratings to Trinity Rail Leasing 2019 LLC, Series 2019-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Series 2019-2 Class A-1 and Class A-2 Notes issued by Trinity Rail Leasing 2019 LLC, a railcar leasing securitization.

Series 2019-2 is the second transaction issued out of Trinity Rail Leasing 2019 LLC (the “Issuer”). The Issuer will acquire all the railcars and related leases associated with this offering from Trinity Industries Leasing Company and Trinity Rail Leasing Warehouse Trust.

On the closing date for the Series 2019-2 Notes, the Issuer expects to acquire an additional 5,425 railcars with an initial appraised value of $501,775,447. Following this acquisition, the railcars owned by the Issuer will total 13,426 with an appraised value of approximately $1.117 billion as of September 17, 2019. The portfolio consists of 7,110 non-tank railcars with an aggregate fair market value (“FMV”) of $482.7 million, and 6,316 tank railcars with an aggregate FMV of $694.2 million. All of the railcars are on lease, with the majority (77%) on full service leases, under which the Issuer is responsible for covering maintenance costs for the railcars.

The Series 2019-2 is structured as two classes of notes with approximately a 14.50% annual amortization until the rapid amortization date (“RAD”) which occurs seven years after the closing date. After the RAD, all remaining funds after paying senior fees, expenses and interest will be used to pay down the notes after scheduled principal. The $906.2 million total Class A notes of the existing series 2019-1 and the new series 2019-2 represent 77.0% of the appraised value of the railcar portfolio. In addition to overcollateralization, the securitization includes a liquidity facility, a debt service coverage ratio trigger at 1.05x, and a utilization trigger at 80%.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Trinity Rail Leasing 2019 LLC, Series 2019-2

Series 2019-2

Rating

Initial Principal Balance

Class A-1

A (sf)

$106,900,000

Class A-2

A (sf)

$279,600,000

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

John Lampasona, Director
(646) 731-2318
jlampasona@kbra.com

Joanne DeSimone, Senior Director
(646) 731-2306
jdesimone@kbra.com

Zara Shirazi, Director
(646) 731-3326
zshirazi@kbra.com

Preston Boutwell, Senior Analyst
(646) 731-2367
pboutwell@kbra.com

Contacts

Analytical Contacts:

John Lampasona, Director
(646) 731-2318
jlampasona@kbra.com

Joanne DeSimone, Senior Director
(646) 731-2306
jdesimone@kbra.com

Zara Shirazi, Director
(646) 731-3326
zshirazi@kbra.com

Preston Boutwell, Senior Analyst
(646) 731-2367
pboutwell@kbra.com