The Andersons assumes ownership of all Railcar Ltd./Progress Rail rolling stock (2/16/2004)

It took nearly a year, but The Andersons Inc. now has acquired all rolling stock and leasing assets from Railcar Ltd. and Progress Rail Services Corp.

Completing a deal arranged in March 2003, The Andersons recently obtained 48 locomotives, 6,700 rail cars and contracts to manage an additional 2,600 cars for third-party investors. Most assets are under lease in the United States, Canada and Mexico.

The assets will be owned by several subsidiaries under TOP CAT Holding Co. — a newly formed limited liability company that counts The Andersons as its sole equity investor — and managed by The Andersons' Rail Group.

Brokered by Quadrant Financial Group L.L.C., the deal was financed by $86.4 million in notes underwritten by BB&T Capital Markets, BMO Nesbitt Burns Inc. and CapStone Investments.

"[Our] experience combined with an upward trend in the rail-car market makes this a very good fit for us," said The Andersons President and Chief Executive Officer Mike Anderson in a prepared statement.

The deal enables Progress Rail to concentrate on its core rail component supply and maintenance service businesses, said President and CEO Billy Ainsworth.

Source: Progressive Railroading Daily News