Porterbrook, a leasing company in the UK, recently announced the closure of a significant £250m private placement deal. This deal involved both existing and new investors, which has helped to extend the company’s debt maturity profile while securing attractive pricing. Additionally, this transaction has further diversified Porterbrook’s investor base, attracting institutions from the US, UK, and Switzerland.
Rees Sutton, the Head of Structured Finance at Porterbrook, expressed his satisfaction with the successful closing of this deal. He emphasized that this financial support will enable the company to continue investing in the future of the rail industry. The strong interest shown by investors in lending against stable, long-term assets is a positive sign for Porterbrook’s growth and development.
The notes issued by Porterbrook Rail Finance as part of this private placement deal were given a Baa2 rating by Moody’s, indicating a moderate credit risk. Furthermore, the use of the proceeds from this transaction was verified as green by ISS-Corporate, aligning with the green bond principles set out by the ICMA and LMA. This demonstrates Porterbrook’s commitment to environmentally sustainable investments and practices.
By securing this £250m private placement deal, Porterbrook has not only strengthened its financial position but also positioned itself as a key player in the rail industry. The company’s ability to attract a diverse group of investors and maintain a solid credit rating reflects confidence in its business strategy and future prospects. This successful transaction marks a significant milestone for Porterbrook and sets the stage for continued growth and innovation in the rail sector.
