The Greenbrier Companies, Inc. and Tokyo-based Mitsubishi UFJ Lease & Finance (MUL) have completed agreements that include the commitment of MUL to purchase 6,000 newly manufactured railcars from Greenbrier. The agreement is consistent with the companies’ Memorandum of Understanding announced in April.
The parties have also formed MUL Greenbrier Management Services, LLC, a new railcar management services entity in which 50 percent is owned by each company that will solely manage all railcars in the MUL fleet.
"Greenbrier is pleased to extend its business relationship with MUL with these recently signed agreements and the formation of MUL Greenbrier Management Services," said William A. Furman, Greenbrier chairman and CEO. “This expanded relationship with MUL demonstrates our earned reputation of providing tailored solutions to our customers. We take pride in the series of transactions we have completed with our friends at MUL and look forward to our continuing work together."
"MUL has set an ambitious target to increase MUL's market share to a level that places it among North America's top 8 leading operating lessors of railcars,” remarked MUL President and CEO Tadashi Shiraishi. “We value Greenbrier's ability to build high-quality freight railcars and assist MUL with high-value railcar management services to support MUL's rapidly expanding fleet."
MUL, who intends to grow its portfolio from 5,000 railcars to a total of 25,000 railcars over the next four years, will start to receive the delivery of the new railcars during the fourth quarter of 2017 through to 2020. The agreement also includes MUL obtaining all its railcars exclusively from Greenbrier through 2023.
Over the next several years, MUL will also obtain lease syndications and used equipment that is originated and owned by Greenbrier. The combined value of these transactions exceeds $1 billion.