Siena Lending Group closed a $25 million asset-based credit facility for TRM NRE Acquisition to finance the acquisition of certain assets of National Railway Equipment (NRE). The facility is made up of a revolving credit facility and a delayed draw term loan facility and was closed in 19 days. In addition to financing TRM Equity’s purchase of certain assets of National Railway Equipment, the financing will also support ongoing working capital needs. Armory Securities acted as the company’s advisor on the restructuring, sale and financing.

National Railway Equipment specializes in the sale and service of new and remanufactured locomotives, along with marine engine services, and has delivered more than 1,200 locomotives to North American and international railroads. National Railway Equipment also sells locomotive parts and components and provides overhaul, repair and leasing services, adding value by incorporating its “N-Viromotive” technology to lower fuel consumption and reduce costs and emissions. Following challenges and the resulting transition over the last couple of years, the company was acquired by TRM Equity, a private equity firm that makes control investments in distressed or underachieving middle-market manufacturing businesses.

“Siena delivered on what was promised and met the tight timeframe required to get the deal done in less than three weeks,” Jeffrey Stone, managing director of TRM, said. “We thank everyone on the Siena team and look forward to our financing partnership for NRE to succeed in the future.”

“The company was very appreciative of everyone’s efforts to complete this transaction which helped keep over 300 people employed at NRE,” Nick Tell, senior managing director of Armory, said. “This was the second deal we have completed with Siena in this industry who dug deep to understand the business, and we look forward to working on more opportunities together with the Siena team.”

“We are happy to deliver on a flexible financing for NRE and get the deal done with TRM in such a short time frame,” Mark Orlando, managing director of Siena Lending Group, said. “Our team’s knowledge of the industry and experience working with Armory on the financing over several months allowed us to develop a creative structure which we could execute quickly. We’re excited to provide a mutually beneficial financing relationship between Siena and NRE to help them reach new levels of success.”