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Angel Trains
Description
Angel Trains was the largest of three UK passenger rolling stock leasing companies created as part of the privatisation of the UK railways, comprising approximately 3,600 electric and diesel railway engines and carriages.
Strategy
A substantial portion of Angel Train's future lease payments was Government-guaranteed and could be immediately securitised to reduce the required investment. Terra Firma identified that the remaining portion of lease payments were extremely reliable and would also be securitisable.
Terra Firma also recognised the potential to transform the economics of train leasing companies by introducing a rigorous commercial approach to cost control, maintenance regimes and marketing.
Outcome
The investment in Angel Trains has been fully realised; being repaid within three months from the proceeds of the second securitisation. Terra Firma sold its equity position to a financial buyer in December 1997.
- “Created the UK’s largest rolling stock leasing company”
- Sector
- Train Leasing
- Transaction size
- €1,050
- Status
- Realised
- Investment year
- 1996
- Exit Year
- 1997