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American Railcar unit seeks consents from 2.98%, 4.06% noteholders
By Wendy Van Sickle
Columbus, Ohio, March 26 – American Railcar Industries, Inc. wholly owned subsidiary Longtrain Leasing III, LLC is soliciting consents from holders of two series of its notes, according to a press release.
The notes include the 2.98% secured railcar equipment notes, class A-1, and the 4.06% secured railcar equipment notes, class A-2.
The parent company said it is continuing its transition to managing its leasing business in-house and is seeking the noteholders’ approvals to allow it to manage the railcars owned by Longtrain.
Noteholders are being asked to approve an amendment to allow American Railcar to act as the manager of the railcars that serve as collateral under the note indenture and to enter into a replacement management agreement and new lease administration and collateral agency agreements.
The current note indenture provides that the company’s former affiliate American Railcar Leasing LLC, which was sold to an unaffiliated third party last year, acts as manager.
The issuer is offering a consent fee of $1.50 per $1,000 principal amount of notes to holders who deliver valid consents by the deadline of 5 p.m. ET on April 10.
If consents are received from holders of the requisite majority of notes, the fee will be paid as soon as practicable.
The required majority is a majority of the total outstanding principal amount of notes.
Consents may be withdrawn up to the expiration time.
D.F. King & Co., Inc. (212 269-5550, 877 478-5040 or ARII@dfking.com) is the information and tabulation agent.
Credit Suisse Securities (USA) LLC (212 325-9896 or 800 820-1653) is the solicitation agent.
American Railcar is a St. Charles, Mo., manufacturer of railroad cars.
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