J.P. Morgan is in the market with a debut $150 million institutional tranche for Trinity Industries, part of a $400 million redux on which bankers are divided, Texas-based Trinity, a maker of freight cars, box cars, gondola cars, and tank cars for hauling everything from lumber to corn syrup, is seen by some as cyclical and unattractive right now. Others said the "B" is already full. "Trinity is re-negotiating its credit lines," confirmed Jim Ivy, v.p. and cfo of Trinity. "We are cyclical, but also diversified," rejoined Ivy. "Our major business is in a major downcycle, but others are strong," he said. The company is seeking a $250 million three-year revolver and a $150 million term loan, he confirmed.
Ivy declined to comment on the reasons behind the timing for the refinance. Pricing on the revolver is LIBOR plus 13/ 4% and LIBOR plus 23/ 4% on the "B" loan, according to bankers.