Trinity Industries, Inc. (“Trinity”) and Wafra Inc. (“Wafra”) Announce the Launch of a Joint Venture Partnership Between Trinity and Certain Funds Managed by Wafra Targeting up to $1 Billion in Leased Railcar Investments

DALLAS & NEW YORK – (BUSINESS WIRE) – Trinity Industries, Inc. (NYSE: TRN) (“Trinity”), a leading provider of rolling stock products and services in North America, and Wafra Inc. (“Wafra”), a global alternative investment manager, announced today that New Railcar Investment Vehicle (“RIV”) program between Trinity and certain funds managed by Wafra (“Wafra Funds”). The RIV program will invest in diversified portfolios of leased railcars developed by Trinity Industries Leasing Company (“TILC”) with an expected total investment of three years for total acquisitions of up to $ 1 billion.

The RIV program is structured as a new joint venture, Signal Rail Holdings LLC (“Signal Rail”), between Wafra Funds and Trinity, with Wafra Funds holding 90% and TILC 10% in Signal Rail. TILC will continue to service all Signal Rail railcars.

In connection with the launch of the RIV program, Signal Rail acquired an initial portfolio of approximately 3,600 railcars (the “Initial Portfolio”), which is a diverse pool of leased railcars from TILC’s leased railcar fleet. Signal Rail financed the acquisition of the Initial Portfolio by SRL 2021-1, a $ 265 million asset-backed securitization across two S&P and KBRA-rated debt classes.

Both the takeover of the Initial portfolio by Signal Rail and the closure of SRL 2021-1 were completed today, August 18, 2021.

“Wafra is excited to partner with Trinity, an established market and thought leader in rolling stock leasing and manufacturing,” said Fawaz Al-Mubaraki, Wafra’s chief executive officer. “Through this joint venture, Wafra is expanding its portfolio of high value investments in real assets. As long-term investors, we know the importance of partnering with industry leaders like Trinity and ensuring meaningful alignment as the foundation for mutual success. We look forward to expanding our partnership with Trinity in the years to come. ”

Trinity Chief Executive Officer and President Jean Savage commented, “We are excited to partner with Wafra as the newest partner to our RIV platform. This joint venture brings together parties with coordinated strategies for long-term investments in high quality assets with high quality investment partners such as Wafra. We believe today’s announcement highlights the attractive return and cash flow characteristics of our railcar facilities. This partnership is a key milestone in Trinity’s long-term plan to optimize our balance sheet and increase our return on equity. ”

Forward-Looking Statements

Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity’s estimates, expectations, beliefs, intentions, or strategies for the future, including transactions and actions relating to the joint venture. The assumptions underlying these forward-looking statements include, but are not limited to, future financial and operational performance, future opportunities, and any other statements about events or developments that Trinity believes or expects to occur in the future can occur, including the potential financial and operational implications of the COVID-19 pandemic. Forward-looking statements speak only as of the date of this document, and Trinity expressly disclaims any obligation or undertaking to post updates or revisions to any forward-looking statements contained herein to reflect changes in Trinity’s expectations regarding them or changes in events, conditions or circumstances on which such a declaration is based, unless this is required under the federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our current expectations, including, but not limited to, risks and uncertainties relating to economic, competitive, regulatory and technological factors affecting business , Markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. In particular, the completion of future sales to the joint venture is subject to general market and other conditions, which in turn are subject to a variety of risks and uncertainties that may affect Trinity, and there are no representations that such sales will be completed when expected or at all. For a discussion of such risks and uncertainties that could cause actual results to differ from those in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K last fiscal year, such as it can be revised and updated through Trinity’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

About trinity

Trinity Industries, Inc., headquartered in Dallas, Texas, owns companies that are leading providers of rail transportation products and services in North America. Our rail-related businesses market their wagon products and services under the TrinityRail® trade name. The TrinityRail platform provides leasing and administration services for railcars, as well as the manufacture, maintenance and modification of railcars. Trinity also owns companies that manufacture products that are used on the country’s roads and in traffic control. Trinity reports its financial results in three main business segments: the Railcar Leasing and Management Services Group, the Rail Products Group and All Other. Further information can be found at: www.trin.net.

About Wafra

Wafra Inc. is a global alternative investment manager. Wafra manages approximately $ 27 billion in assets and capital commitments1. Wafra invests in a wide range of alternative investments, including real assets and infrastructure, private equity, strategic partnerships, real estate and liquid markets. By providing flexible, value-adding capital solutions and focusing on long-term partnerships, Wafra works with world-class companies and management teams. Wafra is headquartered in New York with additional offices in Austin, London, Kuwait and Bermuda. More information is available at www.wafra.com.

____________________________

1 Estimated March 31, 2021

[ad_1]