GATX Corp increases revolving credit facility to $632 million

Published 01/07/2025, 21:34
GATX Corp increases revolving credit facility to $632 million

GATX Corp (NYSE:GATX) entered into a Commitment Increase Supplement on Monday, expanding its existing five-year credit agreement. According to a statement based on a Securities and Exchange Commission filing, M&T Bank (NYSE:MTB) joined as an increasing lender, providing a new revolving credit commitment of $32 million to the company.

With this addition, the total aggregate revolving credit commitments under the agreement rose from $600 million to $632 million. The agreement involves Citibank, N.A. as administrative agent and swing line bank, PNC Bank, National Association and U.S. Bank National Association as issuing banks, and BofA Securities, Inc. as joint lead arranger and joint book manager. Notably, GATX maintains strong liquidity with a current ratio of 2.78x, indicating sufficient coverage of short-term obligations.

The original five-year credit agreement was dated May 21, 2024, and has been amended to reflect the increased commitment. The filing also notes that the supplement is attached as an exhibit to the report.

This information is based on a press release statement included in a recent SEC filing.

In other recent news, GATX Corporation reported its first-quarter 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $2.15, above the forecasted $2.07. The company’s revenue also exceeded projections, reaching $421.6 million compared to the anticipated $417.25 million. This strong performance was highlighted by GATX’s high fleet utilization rate of 99.2% in North America. Additionally, GATX and Brookfield Infrastructure Partners (TSX:BIP_u) announced a joint venture to acquire Wells Fargo (NYSE:WFC)’s railcar fleet for $4.4 billion, a move that could position GATX as a significant player in the railcar market. The joint venture will initially see GATX holding a 30% equity share, with plans to gradually increase its ownership to 100% over the next decade. Analysts at Goldman Sachs maintained a Buy rating on GATX, citing strategic growth potential from the acquisition. Furthermore, GATX’s shareholders approved the election of directors and executive compensation, reflecting confidence in the company’s management and strategic direction. The company’s president and CEO expressed optimism about the integration of the new fleet and its potential to enhance earnings per share.

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