National Salvage & Services Corp

PROJECT DESCRIPTION

Finance rail cars, 100 open-top gondolas

BACKGROUND

Strategic Rail Finance has long advocated to railroads and shippers the wisdom of owning rather than renting some portion of the railcars used in their operation. Unlike investments in large railcar fleets which are dependent on long-term economic and industry trends, owning small fleets of used cars is an attractive, stable investment.When presented with the opportunity to acquire 100 gondolas for operational use, the National Salvage & Service Corporation engaged SRF to evaluate the transaction and structure the most attractive financing.

SRF APPROACH

Strategic Rail Finance rapidly developed an understanding of National Salvage & Service Corporation’s operations and assessed the current and future value of the railcar purchase. SRF identified multiple equipment lots for the client to compare, as well as the best lender, closing the entire transaction within weeks.

RESULTS

• Closed on $1.8 million at 3.5%
• Presented client with numerous rail car lots from which to choose
• Implemented worry-free financing process
• Arranged financing with no closing fees, no down payment, and no other collateral