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A&O advises Europe’s largest private rail freight company on landmark partnerships

Allen & Overy have advised Lineas, the largest private rail freight company in Europe on landmark partnerships with Beacon Rail and Ermewa through sale-and-leasebacks of part of its rolling stock.

The transaction covers two sale and long-term leaseback transactions, one relating to 109 T77 diesel locomotives and the other relating to over 4,000 wagons. The transaction will allow Lineas to reimburse its senior credit facilities in their entirety, further strengthen its financial buffers, increase flexibility going-forward and provide additional financial means to invest in Lineas’ European growth strategy.

The cross-border A&O team was led by Brussels partner Yves Van Pul and London partner Kevin Young and supported by senior associate Josh Davis-Tang, associate Rosalind Roberts in London and associate Dylan De Backer in Brussels.

Yves Van Pul commented “Bringing these two sale-and-lease back transactions to a successful simultaneous close has been a real evidence of our strength as an integrated cross-border team with both rail finance and banking experts working seamlessly together to ensure all pieces came together in time. We are very proud to have been able to bring value to this strategic transaction for Lineas.“

Kevin Young added “We are delighted to build on our strong relationship with Lineas to close transactions which will give Lineas the basis to build on their strategic vision.”

Allen & Overy’s market-leading rail practice has widespread experience in advising the industry on some of its largest, award-winning and most complex transactions across the whole range of rail transaction types.