Benzinga | Oct 13, 2021 01:38PM EDT

Greenbrier Acquires ~3,600 Railcars To Advance Leasing Strategy

* Greenbrier Companies Inc (NYSE:GBX) has acquired more than 3,600 railcars, a portion of which will be held in GBX Leasing (GBXL).

* GBXL, a special purpose subsidiary owned ~95% by Greenbrier, was formed to acquire a minimum of $200 million of newly built and leased railcars in its first year of operations.

* As of September 30, 2021, GBXL's fleet totals nearly 4,000 units with a fair market value of $350 million, exceeding Greenbrier's initial investment target for the venture by 75%.

* "By providing tax-advantaged cash flows, lease fleet investments reduce Greenbrier's exposure to the inherent cyclicality of freight transportation equipment manufacturing," commented Greenbrier CEO and Chairman William A. Furman.

* Greenbrier held cash and equivalents of $636.89 million as of May 31, 2021.

* Price Action: GBX shares closed higher by 2.6% at $44.95 on Tuesday.