Deals
Allstate Starts Rail-Car Venture to Counter Rate Risks
- Duchossois, Henry Crown's CC join insurer in Riverside Rail
- BMO Harris led a credit facility for rail-car acquisition
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Allstate Corp., the largest publicly traded U.S. home and auto insurer, helped form a freight rail-car leasing company as Chief Executive Officer Tom Wilson expands his bets on hard assets to generate better returns than bonds.
The insurer joins CC Industries and Duchossois Capital Management, which is known as DCM, in starting the venture, the investors said Friday in a statement that didn’t disclose terms. The new company, named Riverside Rail, acquired 2,032 rail cars and is backed by a credit facility led by BMO Harris Bank.