Leasing & Finance
Operating Leases
Operating leases are typically shorter term arrangements (generally under seven years), covering both new and existing, owned and managed rail equipment. These agreements are typically structured as a fixed rate rental obligation or a car hire arrangement.
- Net Lease: the lessee is responsible for maintenance, insurance, and taxes.
- Full Service Lease: the lessor is responsible for normal wear and tear maintenance.
- Car Hire Arrangement: railcars generate hourly and mileage earnings while on railroads.
Finance Leases
Finance leases are typically longer term transactions, ten to twenty+ years in length. They usually cover new equipment, in which the lessor's interest is financial only. Generally, the lessee assumes all responsibility for maintenance, taxes, and insurance. Lease transactions can also be structured as single investor or leveraged. The lessee may have early buy-out, renewal and purchase options.
Sale/ Leaseback
In this transaction, used rail equipment is purchased from a company (lessee) by First Union Rail. The title passes from the user to First Union Rail and the equipment is then leased back to the company. This type of transaction often encompasses a modification, upgrade, or rebuild of the equipment prior to being leased back to the lessee.
Portfolio Acquisitions
First Union Rail purchases existing rail equipment from financial institutions, builders, equipment lessors, railroads, and shippers.
Asset Sales
First Union Rail will sell assets from its railcar fleet in order to meet strategic objectives. Typically a bid package is prepared and forwarded to potential buyers.
Lease/ Sublease
This structure involves leasing in equipment from a third party (financial institution, railroad, or shipper) and subleasing it to the ultimate end user.
Loans
First Union Rail offers loans in the form of straight debt secured by equipment. New and used equipment is available for consideration. Terms vary by specific transaction.
Management Services
FUR offers its clients an array of management services:
- Approval and payment expenses
- Bi-lateral negotiations
- Billing and collection
- Car hire audits performed on a scheduled basis
- Car registration and industry filings
- Car tracing
- Inspections/ Appraisals
- Insurance
- Logistics reporting
- Marketing services
- Maintenance and repairs, constantly audited to ensure accurate billing
- Monthly management reports customized to meet customer requirements
- Property tax preparation
- Regulatory Filings, as required
- Railroad/Private car marks available as needed
Marketing Services
Remarketing and Renewal Services
First Union Rail has great experience bringing customers and equipment together. We place thousands of new and existing railcars into productive service each year. Transactions are arranged for all types of equipment including general purpose railcars, locomotives and intermodal equipment.
Railcar Upgrading, Modification, Rebuilding
First Union Rails network of contacts and resources gives us the ability to locate the exact type of equipment a customer desires, and if appropriate modify it to meet required specifications. FUR can often enhance the value of underperforming or obsolete equipment by upgrading, modifying, or rebuilding the asset.
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