Tirinity Industries (NYSE:TRN) will soon be signing lease agreements at a faster clip if its plans go as anticipated. In collaboration with institutional investor Napier Park Railcar Lease Fund, and a co-investor related to the fund, Trinity has established a joint venture for the purpose. The JV, known as RIV 2013 Rail Holdings, is to provide rail car rental services in North America.
The entity's main assets will be roughly $1 billion worth of rail cars. These will be a mix of new rail cars from Trinity's manufacturing arm, and existing stock from a related entity, Trinity Industries Leasing. RIV 2013 is to buy these assets in a series of purchases through the end of 2014.
Of the new venture, the company said it "allows Trinity to further grow its leasing platform and maintain its core relationship with its customers, while reducing the amount of capital investment required to grow the lease fleet."
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