Pamplona Capital Management and JP Morgan Asset Management (JPMAM) on Thursday announced the sale of Luxembourg-based Beacon Rail Leasing to institutional investors advised by JPMAM.
Headquartered in Luxembourg with additional offices in London and Boston, Beacon Rail’s current portfolio includes 225 locomotives, more than 1,000 freight wagons, 55 passenger train units, 67 double-decker coaches and 13 sets of five-car intercity carriages on lease in the UK, Germany, Denmark, France, Belgium, Norway, Sweden, Austria and the Netherlands.
Ted Gaffney, chief executive at Beacon Rail, will continue to lead the company, supported by the existing management team.
Matt LeBlanc, CIO for OECD infrastructure at JPMAM, said: “Beacon Rail (is) a core transportation platform that provides investors with access to a diversified portfolio of rolling stock assets in the UK and Continental Europe.
“The quality of the management team, relatively young fleet of assets and deep customer relationships provide an opportunity for growth and expansion.”
Investment of 400 million euros
Pamplona acquired Beacon Rail from BTMU Capital Corporation in May 2014 for about 450 million dollars.
Beacon Rail went on to acquire Ascendos Rail Leasing in June 2016 and entered into an agreement to supply rolling stock to First TransPennine Express in May 2016.
The financing for the latest deal was arranged by Credit Agricole Corporate Investment Bank, which will act as facility agent, with ING Bank NV acting as security trustee.
Allen & Overy LLP acted as legal counsel for the lenders, while Berwin Leighton Paisner LLP and Lowenstein Sandler LLP acted as legal counsel for Beacon Rail and Pamplona.