Napier Park Completes Initial Investment of Its $370 Million Railcar Lease Fund One Year after Inception

  Napier Park Completes Initial Investment of Its $370 Million Railcar Lease
  Fund One Year after Inception

     Specialized, Single-Purpose Private Equity Fund Owns a $2.1 Billion
 Diversified Fleet of Railcars alongside Trinity Industries’ Railcar Leasing
                                   Business

Business Wire

NEW YORK -- May 12, 2014

Napier Park Global Capital LLC (“Napier Park”), a global alternative asset
management firm, announced today that its Financial Partners team has
completed the initial investment of the Napier Park Railcar Lease Fund, LLC
(the “Railcar Lease Fund” or the “Fund”), a $370 million specialized,
single-purpose private equity fund, deploying a total of $359 million in
equity capital, or 97%, within 12 months of the Fund’s inception and nine
months after its final closing. This investment by the Fund, along with equity
capital from the Fund’s joint venture partners listed below and long-term
debt, has financed the acquisition of railcars representing $2.1 billion in
asset value.

“We are delighted with how successful this innovative investment opportunity
has proven to be to date,” said Jim O’Brien, co-Managing Partner of Napier
Park. “Just nine months after closing the fund we have already deployed most
of the capital and secured attractive long-term, low-cost debt financing. We
are grateful for the backing we have received from an impressive group of
limited partners to participate in this important asset class alongside our
operating partner, Trinity Industries.”

The Railcar Lease Fund was established as part of a joint venture between
Napier Park and Trinity Industries Leasing Company (“TILC”), a wholly owned
subsidiary of Trinity Industries, Inc. (NYSE:TRN; “Trinity Industries”), a
diversified industrial company that includes, as one of its principal
businesses, the manufacture and leasing of railcars. The Fund’s limited
partners include leading U.S. life and property & casualty insurance companies
and family offices, and the Fund now owns 54% of the joint venture, comprised
of ownership in the underlying operating companies, TRIP Rail Holdings LLC
(“TRIP”) and RIV 2013 Rail Holdings LLC (“RIV 2013”). A Fund limited partner
has also made a direct co-investment in the joint venture.

On May 9, 2014, TRIP purchased a $388 million portfolio of existing, leased
railcars from TILC to complete the initial fleet. The portfolio purchase was
financed with the issuance of long-term, asset-backed debt and previously
committed equity capital. The newly issued debt has a weighted average life of
8.2 years and a blended coupon of approximately 3.8% at closing. The debt is
secured by TRIP’s fleet of railcars and the associated operating leases and is
non-recourse to TRIP and to the Fund. Importantly, this most recent financing,
along with the previously completed financings used to capitalize prior
purchases through TRIP and RIV 2013, are in-place throughout the life of the
Fund.

As of May 9, 2014, on an aggregate basis, the joint venture owns a total
portfolio of $2.1 billion of railcars, based on GAAP equipment book value,
with an average age of 5 years, on lease principally to industrial shippers.
As of March 31, 2014, the railcars were 100% utilized.

“We are particularly pleased to have established, through our partnership with
Trinity Industries Leasing Company, a young, highly-diversified, fully-leased
and, most importantly, economically-attractive fleet of freight and tank
cars,” said Manu Rana, Managing Director, Napier Park Financial Partners, and
“we and our limited partners look forward to a continued and productive
partnership with Trinity Industries Leasing Company and Trinity Industries.”

About Trinity Industries, Inc.

Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified
industrial company that owns a variety of market-leading businesses which
provide products and services to the industrial, energy, transportation, and
construction sectors. Trinity reports its financial results in five principal
business segments: the Rail Group, the Railcar Leasing and Management Services
Group, the Inland Barge Group, the Construction Products Group, and the Energy
Equipment Group. For more information, visit: www.trin.net.

About Napier Park Global Capital

Napier Park Global Capital is an independent alternative asset management firm
with a core focus on alternative credit and structured equity investments that
manages approximately $6.0 billion as of April 1, 2014. The firm manages a
diversified product mix including hedge funds, bespoke client separate
accounts, private investments and CLOs for large, sophisticated institutional
investors.

Financial Partners seeks to provide primary, secondary and special situations
capital to financial services businesses and companies servicing financial
institutions. The strategy provides equity, debt or hybrid capital for event,
special situation, or growth, acquisition or recapitalization financings.

Napier Park Global Capital has offices in New York and London. For more
information visit www.napierparkglobal.com.

Contact:

Muirfield Partners
Mickey Mandelbaum or Maya Pogoda
310-785-0810
mickey@muirfieldpartners.com
maya@muirfieldpartners.com
 
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