ON JUNE 28 Trinity Industries Inc announced the sale of $1·4bn of wagons over 24 months as part of a complex deal involving the formation of a new company.

Trinity Industries has purchased a 20% equity share in TRIP Rail Holdings LLC, with the remaining equity held by five unrelated private investors. A wholly-owned subsidiary of TRIP will purchase the wagons, which will be managed and serviced by Trinity Industries Leasing Co. Financial details were not available at the time of the announcement.

'By forming this new company, we are able to shift a significant portion of Trinity's railcar backlog that had been dedicated to our internal lease fleet to third-party sales transactions,' said Trinity's Chairman, President & CEO Timothy Wallace. 'By doing so, we can continue growing our leasing operations while simultaneously improving the company's overall cash flow.'