Brunswick II

completed

Brunswick Rail Leasing (BRL or the company) is a Russian registered company formed in 2003 to provide railcars to customers in Russia and neighboring broad-gauge countries. BRL acquires railcars and leases them to large industrial and transport companies under long-term operating and financial lease contracts. BRL’s total fleet is around 7,000 cars and its plan is to add approximately 5,000 railcars to its fleet over the next 12 months. The company intends to borrow up to $385 million from IFC and other lenders to finance its fleet expansion and refinance existing debt. Once the new loan is drawn down, the company plans, subject to the outcome of a feasibility study to be undertaken in July-August, to transfer the assets (i.e. lease receivables and railcars) to a Special Purchase Vehicle (SPV), which would sell rated bonds into the market place. The proceeds from this securitization would be used to repay the company’s debts.