$36 million rolling stock - construction funding and 10 year fixed rate rental
Our client – an Australian ASX Listed Coal producer sought advice on funding options to support the construction and off balance sheet rental of 162 new heavy haulage coal rail wagons.
The client approached their own Senior debt syndicate members together with a large US Finance group as well as ASF who had maintained a long term equipment leasing relationship exceeding $50 million for several years with the firm.
ASF’s role included identifying underwriters/ investors, structuring a 1 year construction + 10 year fixed rate funding facility in a post GFC environment together with securing residual value risk against this asset class to enable an operating lease/ rental arrangement.
ASF eventually secured and presented the only two fully credit underwritten 1+ 10 year fixed rate funding proposals at approx $36 million each available in the market on extremely competitive terms - with both meeting the clients objectives.
ASF’s role was to identify funding and risk participants, secure unconditional formal credit approval, oversee progressive construction funding and conversion into a long term fixed rate rental facility.
