Rail Financing

Operating leases are typically shorter term arrangements (generally under seven years), covering both new and existing, owned and managed rail equipment. These agreements are typically structured as a fixed rate rental obligation or a car hire arrangement.

Net lease: the lessee is responsible for maintenance, insurance, and taxes.

Full service lease: the lessor is responsible for normal wear and tear maintenance.

Car hire arrangement: railcars generate hourly and mileage earnings while on railroads.

Wells Fargo Rail provides debt financing to railroads, shippers, equipment lessors, and maintenance of way providers to support the acquisition of railcars, locomotives, and ancillary rail equipment.  Flexible terms and payment options are available.

Single investor leases

Single investor leases are long term arrangements (7 years and longer) for new or used equipment.  These are typically structured as a net lease with the lessee responsible for maintenance, insurance and taxes.  Usually, the lessee has the opportunity to purchase the equipment at lease end.

Portfolio acquisitions

Wells Fargo Rail purchases existing rail equipment from financial institutions, builders, equipment lessors, railroads, and shippers.

Sales and leaseback

In this transaction, used rail equipment is purchased from a company (lessee) by Wells Fargo Rail. The title passes from the user to Wells Fargo Rail and the equipment is then leased back to the company. This type of transaction often encompasses a modification, upgrade, or rebuild of the equipment prior to being leased back to the lessee.