National Salvage & Service Corporation

National Salvage & Service Corporation

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
Veolia

Veolia

Veolia

PROJECT DESCRIPTION

Arrange $12MM rail equipment financing

 

BACKGROUND

Veolia, a global provider of maintenance & infrastructure services for commuter and freight railroads (through its VTMI subsidiary) needed a funding facility to acquire rail construction and maintenance equipment for its burgeoning operations around the US.

 

SRF APPROACH

SRF worked with Veolia’s financial team to structure terms which protected Veolia’s options for future disposition of the equipment. We developed an approach that ensured compliance with international accounting standards for this multi-national corporation and reviewed our banks’ appetites and capabilities to select the best choice.

 

RESULTS

  • Arranged $12MM equipment purchase line of credit that did not require a guarantee from VTMI’s international parent
  • Provide ongoing orchestration between client, multiple vendors, and our bank, leaving VTMI free to focus on operations
Patriot Renewable Fuels

Patriot Renewable Fuels

Patriot Renewable Fuels

PROJECT DESCRIPTION

Acquire and finance 200 rail tank cars

 

BACKGROUND

Patriot Renewable Fuels, a successful ethanol producer in Illinois sought SRF’s counsel in their lease fleet decision-making. They had been challenged to identify an interested bank for rail car and project financing now that their local bank was approaching its lending limit. Many banks do not understand and/or do not operate in the bio-fuels space.

 

SRF APPROACH

SRF considered the entire companies plans and needs and quickly illuminated the logic of buying and financing the purchase of new, rather than used, ethanol tank cars. As a respected and trusted advisor in the rail industry and banking, SRF is backed by seven of the largest banks in North America. After arranging an early production slot with a tank-car manufacturer, we pinpointed the ideal bank partner for this transaction and for the client’s long-term growth.

 

RESULTS

  • Arranged $35MM railcar financing without a parent company guarantee
  • Structured off-balance sheet financing that still retains benefits of buying cars
  • SRF is providing ongoing guidance on regulatory developments and tank car design
Eagle Globe Advisors

Eagle Globe Advisors

Eagle Global Advisors

PROJECT DESCRIPTION

Advise on high-speed passenger rail investment

 

BACKGROUND

Strategic Rail Finance was recommended by the project developers for providing due diligence support to the principal of Eagle Global Advisors, a private equity firm, who was evaluating a potential investment in this innovative high speed passenger rail and land development project.

 

SRF APPROACH

SRF determined the exact amount and focus of an appropriate due diligence evaluation to augment the client’s own capable transaction analysis. During this one-month engagement SRF assessed the project status, including the local, state, and federal landscape for support or opposition, and the likelihood of public sector funding assistance. We completed a review of the project’s investment grade ridership study incorporating input from our team of national experts in passenger rail transportation.

 

RESULTS

  • Completed a thorough analysis in a short time at minimal cost to the client
  • Applied our successful freight transportation approach to the passenger transport field
  • Client proceeded with their investment, better informed by our indepth report