Trinity Industries, Inc. (NYSE:TRN) announced today that it closed the initial sale of leased railcars to Element Financial Corporation (TSX:EFN) (“Element”) under a new $2 billion strategic railcar alliance agreement announced earlier this month. As anticipated, the initial sale consisted of a portfolio of existing leased railcars from Trinity’s lease fleet. The sale generated total proceeds of approximately $105 million, and the profit recognized from the sale in the fourth quarter of 2013 is expected to be in line with the range previously provided of $0.11 to $0.13 per share. Trinity does not have any remaining ownership interest in the leased railcars sold to Element. Trinity Industries Leasing Company, a wholly-owned subsidiary of Trinity, will act as servicer of the railcars sold to Element.
The Company will provide future updates on the alliance with Element as appropriate.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns market-leading businesses which provide products and services to the energy, transportation, chemical and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: