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Greenbrier Receives $75 Million Loan From WL Ross

The Associated Press

NEW YORK (AP) — Greenbrier Cos., which produces railroad freight car equipment, said Thursday that said it has received a $75 million term loan that will be used to help pay down debt.

The company has been looking for ways to trim costs during the recession, announcing in February that it would reduce its work force by approximately 150 positions to help save money.

The loan, funded by WL Ross & Co. LLC, has a three-year term and matures in June 2012. The loan also may potentially be increased to $150 million if both companies agree on conditions necessary to raise it.

Greenbrier also amended a revolving credit agreement that matures in November 2011 in order to lower its size to $100 million from $290 million and ease some financial covenants.

Greenbrier said the loan and amended facility will give it sufficient liquidity and reduce the possibility of default.

WL Ross & Co. founder, Chairman and Chief Executive Wilbur L. Ross Jr. and Senior Vice President Wendy Teramoto will join Greenbrier's board.