Madrid Metro

Flexrail Lux owns equity stakes in four SPVs which own and lease rolling stock to Metro de Madrid, the major public transport operator in the Spanish capital.

The rolling stock comprises around 60% of what currently runs on the metro network. Metro de Madrid benefits from the option to purchase the rolling stock at the end of the leases. Flexrail is sponsored by a French private equity firm with extensive experience in leasing transactions.

Sequoia provided a €76.1 million HoldCo facility to refinance Flexrail’s acquisition debt from the purchase of the SPVs. The facility is secured on all assets of the borrower and benefits from a cash sweep on proceeds from the option payments. The first of the four trainsets has been purchased by Metro de Madrid and the transaction is performing in line with Sequoia’s base case at investment.