American Railcar gets needed consents from 2.98%, 4.06% noteholders

By Marisa Wong

Morgantown, W.Va., April 17 – American Railcar Industries, Inc. said wholly owned subsidiary Longtrain Leasing III, LLC has completed its consent solicitation and obtained the approvals needed to allow American Railcar to manage the railcars owned by Longtrain.

As announced on March 26, Longtrain was soliciting consents from holders of its 2.98% secured railcar equipment notes, class A-1, and its 4.06% secured railcar equipment notes, class A-2. Approval of the proposal required consents from holders of a majority of the total outstanding principal amount of both series of notes, as previously noted.

Longtrain received consents from holders of about 88% in aggregate principal balance of the class A-1 and class A-2 notes, according to a Tuesday press release.

The issuer will pay a consent fee of $1.50 per $1,000 principal amount of notes to holders who delivered consents by 5 p.m. ET on April 10, the expiration of the consent solicitation.

The proposed amendment allows 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. Longtrain said it entered into a first indenture supplement and the new agreements on Tuesday.

Credit Suisse Securities (USA) LLC (212 325-9896 or 800 820-1653) was the solicitation agent.

D.F. King & Co., Inc. (212 269-5550, 877 478-5040 or ARII@dfking.com) is the information and tabulation agent.

American Railcar is a St. Charles, Mo., manufacturer of railroad cars.

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