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Land Transport Finance – Important deal 2015

As the seventh-largest company of its kind in Europe, European Rail Rent (ERR) is a medium-sized freight car lessor with a highly diversified fleet of approximately 4,000 railcars. Against the background of drawn-out legal disputes, which had a considerable impact upon the company's financial situation, ERR approached DVB, looking for a comprehensive restructuring and refinancing of all its liabilities to banks. ERR's objectives were to profoundly realign its borrowings, and to relieve its operating business from debt-related burdens and restrictions.

For the transaction, we conducted a comprehensive analysis of the leasing portfolio – together with the related collateral – across numerous European jurisdictions. In addition to a partial reorganisation of the ownership structure and a revaluation of the entire railcar fleet, we refinanced all of the Austrian entity's bank liabilities with a senior secured amortising loan which has some features of a non-recourse rolling stock financing. The transaction was closed successfully despite immense time pressure and extensive multilateral negotiations. DVB was the sole underwriter of the syndicated facility, and also acted as Security Agent and Administrative Agent.

With this pure asset-based financing, the Bank permitted ERR to continue its rental activities, and to enhance its financial performance with significantly lower debt. Once again, the transaction was proof of our special expertise, market knowledge, and ability to deliver integrated solutions within an ambitious timeframe – working with our clients and fulfilling their operating requirements.

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