Three Chicago-based investors, affiliates of Allstate, Duchossois Capital Management, and CC Industries Inc., have announced the formation of a new freight railcar leasing company: Riverside Rail.
Earlier this week, the investor group acquired 2032 railcars. The diversified railcar fleet includes a mix of covered hoppers, coal cars, mill gondolas, boxcars and centerbeams.
The investor group believes railcar leasing represents an attractive long-term investment and seeks to grow this initial railcar investment into a larger railcar leasing fleet.
Riverside Rail plans to build a full-service leasing and management services company over the next several years.
BMO Harris Bank led a credit facility for the railcar acquisition, and Vedder Price served as legal counsel to Riverside Rail. Terms of the transaction were not disclosed.
Edited from press release by Harleigh Hobbs