National Railroad

GraduateSchool of Business Administration University of Virginia UVA-F-1363 Version 1.5 National Railroad rider Corporation (AMTRAK): Acela Financing On April 30, 1999, Arlene Friner, CFO of Amtrak, instructed her Treasury ply to review a leveraged lease proposal from the BNY Capital victuals LLC (BNYCF). Several weeks prior, Amtrak and its advisor, Babcock & Brown Financial Corporation, had invited financial institutions to submit lease-financing proposals for Amtraks planned purchase of locomotives and high-speed trainsets.1 The equipment would be utilized on the Acela line, Amtraks new brand that was designed to differentiate Amtrak rider trains and service in the Northeast corridor from the existing service.2 Acela, scheduled to take service in late 1999, promised to offer faster post times and premium service (see Exhibit 1). Arlene and her staff had foregone over the proposals and agreed that BNYCF was among those that offered the best terms. Now she had to de cide whether Amtrak should finance the equipment purchases using BNYCFs leveraged lease proposal, or instead, borrow plate and purchase the equipment on its own.

Company Background In 1970 the nitty-gritty States Congress created The National Railroad Passenger Corporation (Amtrak) to hold in that modern, efficient intercity passenger rail service would remain an incorporate part of the national transportation system.3 The government mandated Amtrak to reproof over the rail passenger operations of private railroads. Since then, Amtrak became the ingenuous provider of passenger rail service in the coupled States. Amtraks national network provided service to! more than 20 million intercity passengers, and operated 516 stations in 44 states. A trainset consisted of law first class pushchair car, one bistro car, three civilize cars, one end coach car and two string play cars. 2 Babcock and Brown memorandum, p.1 3 Executive epitome: 1999 assessment of Amtraks Financial Needs Through 2002 1 This case was...If you exigency to get a full essay, revisal it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper