• Beacon Rail Leasing (Beacon) owns a diverse portfolio of 337 locomotives (diesel, electric, and dual-mode locomotives operating in freight and passenger services), 550 passenger vehicles (electric units, diesel units, and coaches) and 969 freight wagons
  • Beacon’s fleet operates in 16 markets across Europe, with c. 60% of its revenue originating in the UK
  • In 2017, the company was acquired by the Infrastructure Investment Fund (IIF), a fund managed by J.P. Morgan Asset Management


  • DC Advisory (DC) was engaged by Beacon as sole financial advisor to raise a total of €1.45bn of senior debt facilities (including c. €350m of unfunded revolving credit facilities) to refinance Beacon’s existing debt and provide additional capacity to finance future rolling stock procurements and acquisitions
  • DC facilitated a comprehensive refinancing process, engaging various sources of liquidity in order to address a number of key objectives:
    • Developing a long-term, permanent capital structure incorporating both long-dated PP debt and bank term facilities in Sterling and Euro to reduce refinancing risk and secure a low cost of debt
    • Allowing Beacon the operational flexibility befitting a steady-state, investment-grade company through improved documentation
    • Putting in place revolving capex, working capital, liquidity and maintenance reserve facilities, alleviating the need for reserve accounts
  • As part of the process the DC team delivered a number of detailed work streams including key marketing materials (e.g. management presentations, IM and RFP), business planning, due diligence, financial modelling and sensitivity analysis, debt structuring, and full documentation negotiations


  • DC delivered a highly competitive refinancing package, the primary features of which were:
    • A new, multi-creditor platform incorporating both banks and institutional lenders
    • A significantly extended and diversified maturity profile
    • Improved covenants and terms, resulting in greater operational and financial flexibility
    • A reduction in the overall cost of debt in spite of a longer average tenor