MUFG has acted as Joint Lead Placement Agent and Bookrunner on Porterbrook Rail Finance Limited's issuance in the US Private Placement market of £250m Senior Secured Notes, due to mature in 2028.

Porterbrook is a leading rolling stock owner and lessor in the UK with a current market share of approximately 32% of the UK passenger train leasing market by number of vehicles. Porterbrook enters into operating leases to supply a diverse range of passenger rolling stock (including regional, commuter and high speed passenger trains) and freight locomotives to train operating companies in the UK. Porterbrook is owned by experienced infrastructure investors from Canada, Germany, the UK, France and Australia with long-term investment horizons.

This US PP issuance follows Porterbrook's £885m bank facility refinancing transaction completed in June 2018 and in which MUFG was a Mandated Lead Arranger and Hedge Provider. As part of that refinancing process, Porterbrook obtained a Baa2 secured long-term credit rating from Moody's.

The company chose to return to the US PP market for this financing due to favourable US investor pricing dynamics compared to the Sterling public bond market, amortising note flexibility and delayed settlement capability. This was Porterbrook's second US PP transaction, following its debut in 2016. On this occasion, the management team conducted a roadshow in the US in order to provide investors with additional comfort on the evolving UK rail sector dynamics and the company's strategy for continuing to grow its business in the face of a number of challenges.

Darryl D'Souza, Head of Financial Sponsors (Structured Finance) for MUFG in EMEA said:

"We are delighted to have been able to support Porterbrook at an important time for the business and so soon after our role in the refinancing transaction in June 2018. This successful US PP transaction demonstrates the broad range of products that we are able to deploy in support of our clients in the European infrastructure sector beyond traditional bank debt financing.

"A high level of investment in new and existing rolling stock will be required to meet the demand for UK rail capacity which is forecast to grow further through to 2030. Porterbrook has a proven business strategy, a robust group of long-term infrastructure investors and highly experienced management team that make it well positioned to help meet this demand."

Conrad Owen, Head of Private Placements for MUFG in the Americas, added:

"Porterbrook selected MUFG on the back of our solid track record in the US PP market combined with our deep understanding of the sector, and we are very pleased to have provided excellent execution for Porterbrook on their second US PP transaction, helping the company achieve all of its key objectives.

"This transaction reflects the significant investment that has gone into MUFG's global debt capital markets franchise and further cemented MUFG's dominant position in the US PP market with MUFG currently placed #2 in the H1 2018 global US PP league tables by Dealogic. The deal marks MUFG's 12th US PP for non US issuers in 2018 to date. Our global DCM platform combined with our execution expertise is fundamental to driving success in this market."

Stefan Rose, Head of Structured Finance for Porterbrook, commented:

"This transaction builds on the refinancing of our corporate facilities which we completed earlier in the year and ensures that we now have a diversified funding group to support our financing needs going forward.

"The depth of support and knowledge provided by MUFG, as one of our joint Placement Agents and Bookrunners, played an important role in the significant appetite for the transaction which supports the position of Porterbrook within the UK rail market, with investors recognising the value we add in innovation and maintenance of our rolling stock fleet across the network."