Overview

• The joint venture will invest $4.4 billion to acquire roughly 105,000 railcars, while Brookfield separately purchases about 23,000 cars and 440 locomotives from Wells Fargo.
• GATX will hold a 30% equity stake and oversee fleet management for both the JV and Brookfield’s finance-lease assets, with an option to acquire full control over the next decade.
• Financing for the deal comprises a $3.2 billion five-year unsecured term loan and a $250 million revolving credit facility underwritten by a syndicate including Wells Fargo Securities and BofA Securities.
• The sale marks Wells Fargo’s exit from its three-decade rail leasing business as part of a broader effort to streamline its portfolio and concentrate on core banking services.
• Subject to regulatory approval, the deal will position the JV among North America’s largest railcar lessors with a fleet utilization rate of about 97%.