LOS ANGELES Greenbrier Cos. is retiring $52.9 million of its outstanding convertible debt.
The move is part of Greenbriers overall program of "strategic initiatives" designed to raise its gross profit margins by 2 percent and reduce the capital employed in its operations by at least $100 million by the close of its fiscal year ending Aug. 31, Greenbrier said.
The notes represent the majority of Greenbriers $67.7 million in outstanding 2.375-percent convertible senior notes due 2026, the Lake Oswego, Ore.-based manufacturer and refurbisher of railroad freight cars said.
Greenbrier will use cash generated from operations and borrowings on its existing revolving credit facilities to purchase the notes.
The company it intends to "redeploy this liberated capital" in new opportunities, to pay down debt or to return to shareholders, it added.
Greenbrier late last year fended off a $597-million takeover attempt by investor Carl Icahns American Railcar Industries Inc., St. Charles, Mo. (amm.com, Dec. 28).