Lineas enters into long-term partnership with Beacon and Ermewa through sale-and-leaseback of rolling stock

Lineas announced its partnership with Beacon and Ermewa through a sale-and-leaseback of part of its rolling stock

The transaction will allow Lineas to reimburse entirely its senior credit facilities, further strengthen its financial buffers, increase flexibility going-forward and provide additional financial means to invest in the further transformation of the company and its European growth strategy.

Lineas is pleased to announce it has entered into a long-term partnership with UK-based Beacon and France-based Ermewa. The deal covers the sale and long-term leaseback of 109 T77 diesel locomotives (to happen gradually in the period 2021-2023), as well as approximately 4.000 wagons in 2021.

Jan De Raeymaeker, CFO of Lineas: “This sale-and-leaseback transaction is an important step towards our transformation into an asset-light company, keeping long term access to these strategic assets, whilst at the same time increasing the flexibility to up and down scale in a continuously evolving market environment. The deal allows us to further strengthen our financial buffers and repay the entirety of our outstanding bank debts. The released capital will also be used to accelerate our transformation and European growth strategy.”

Kurt Coffyn, COO of Lineas: “With Beacon and Ermewa, Lineas is gaining strong partners with the necessary expertise to help build a future-proof fleet at European level. The transaction will allow us to join forces in the development of new technologies such as Digital Automatic Coupling (DAC) and the European Train Control System (ETCS). These innovations are essential in making our rail offering even greener and more efficient, and thereby driving Modal Shift and contributing to Europe’s Sustainability Goals.”

Rob Dee, CCO of Beacon: “Beacon is delighted to have entered into this long-term partnership with Lineas through the sale-and-leaseback of 109 T77 locomotives. We look forward to supporting Lineas in their drive for continued modal shift across the European rail network through enhancements to these assets and future growth opportunities.”

David Zindo – President of Ermewa Group: “We are honoured and proud to have been selected by Lineas for this sale and lease back transaction, allowing Lineas to invest the freed-up capital in growth and business transformation projects. Lineas and Ermewa, as major actors in European rail freight, have a joint responsibility to make shift to rail as attractive as possible to existing and future rail freight customers. We are delighted to start working with Lineas on new wagon concepts, innovation and new technologies to fulfil this responsibility.”
As a result of the transaction, Lineas will continue to use the assets in its day-to-day operations as well as remain the entity in charge of their maintenance.

Lineas was advised in this transaction by Apex Rail and Allen & Overy LLP.

www.lineas.net

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