Debt (Tables)

9 Months Ended

Sep. 30, 2018

The following table summarizes the components of debt as of September 30, 2018 and December 31, 2017:



	September 30, 2018			December 31, 2017
	(in millions)
Corporate – Recourse:
Revolving credit facility	$	—		$	—
Senior notes, net of unamortized discount of $0.3 and $0.3	399.7			399.7
Convertible subordinated notes, net of unamortized discount of $- and $8.2	—			441.2
Other	0.4			0.5
	400.1			841.4
Less: unamortized debt issuance costs	(2.4		)	(2.9		)
	397.7			838.5
Leasing – Recourse:
Capital lease obligations	26.5			28.3
Total recourse debt	424.2			866.8

Leasing – Non-recourse:
Wholly-owned subsidiaries:
2006 secured railcar equipment notes	139.4			158.5
2009 secured railcar equipment notes	161.7			166.2
2010 secured railcar equipment notes	258.9			266.9
2017 promissory notes	282.3			293.6
2018 secured railcar equipment notes, net of unamortized discount of $0.2 and $-	477.3			—
TILC warehouse facility	228.7			150.7
	1,548.3			1,035.9
Less: unamortized debt issuance costs	(17.3		)	(11.1		)
	1,531.0			1,024.8
Partially-owned subsidiaries:
TRL 2012 secured railcar equipment notes	386.7			402.8
TRIP Master Funding secured railcar equipment notes	946.9			962.5
	1,333.6			1,365.3
Less: unamortized debt issuance costs	(13.1		)	(14.5		)
	1,320.5			1,350.8
Total non–recourse debt	2,851.5			2,375.6
Total debt	$	3,275.7		$	3,242.4

Total interest expense recognized on the Convertible Subordinated Notes

Total interest expense recognized on the Notes for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(in millions)
Coupon rate interest	$	—	$	4.4	$	7.2	$	13.1
Amortized debt discount	—		4.7		8.2		13.8
	$	—	$	9.1	$	15.4	$	26.9

Remaining principal payments under existing debt agreements

The remaining principal payments under existing debt agreements as of September 30, 2018, are as follows:



	Remaining three months of 2018		2019		2020		2021		2022		Thereafter
	(in millions)
Recourse:
Corporate	$	—	$	0.1	$	0.2	$	0.1	$	—	$	400.0
Leasing – capital lease obligations (Note 6)	1.0		25.5		—		—		—		—
Non-recourse – leasing (Note 6):
2006 secured railcar equipment notes	6.3		28.0		29.8		29.2		29.9		16.2
2009 secured railcar equipment notes	2.0		11.2		6.6		13.4		14.1		114.4
2010 secured railcar equipment notes	2.0		7.6		14.2		20.1		21.0		194.0
2017 promissory notes	3.8		15.1		15.1		15.1		15.1		218.1
2018 secured railcar equipment notes	5.0		20.0		20.0		20.0		20.0		392.5
TILC warehouse facility	1.8		7.3		7.3		7.3		1.2		—
Facility termination payments - TILC warehouse facility	—		—		—		—		203.8		—
TRL 2012 secured railcar equipment notes	6.0		21.9		19.3		19.9		19.6		300.0
TRIP Master Funding secured railcar equipment notes	4.7		23.8		32.9		40.4		41.8		803.3
Total principal payments	$	32.6	$	160.5	$	145.4	$	165.5	$	366.5	$	2,438.5

Subsequent Event

On October 17, 2018, the Leasing Group acquired, from an unrelated seller, the entire equity interest of a railcar leasing entity for $75.4 million in cash. As a result of the purchase transaction, the Leasing Group acquired approximately 4,150 railcars, substantially all of which are currently under lease to third parties, and assumed indebtedness of approximately $283.9 million with maturities ranging from 2018 through 2035. The Company will record the acquired railcars, the attached leases and the assumed debt at fair value in its Consolidated Balance Sheet as of the purchase date.