Bid Management answers the online financing marketplace’s request for a proposal and bid evaluation system, and enabled BNSF to request bids electronically for the funding of specialized, auto parts boxcars. With the ability to manage rates and terms as funding sources made offers for the business, BNSF was able to analyze bids quickly and complete the deal in significantly less time than it would have taken via phone-and fax-based lease deal methods.
BNSF had signed a five-year agreement to haul auto parts for a Midwest manufacturer and needed specialized rail cars to fulfill the agreement. The company was looking for a lessor who offered competitive lease rates as well as operational flexibility at the end of the initial contract period. Using CapitalStream’s infrastructure, BNSF was able to send a request for proposal to 30 prospective lessors simultaneously, and receive five attractive proposals in less than two weeks, a rapid response for a deal of this size and type.
The deal to fund BNSF’s railcars, which closed on December 21st, 2000, was awarded to Bombardier Capital Rail Inc., a leading supplier of railcar leasing and management services in North American markets. Bombardier Capital Rail is a wholly owned subsidiary of Bombardier Capital Inc., an international supplier of asset-based financial solutions.
According to Steve Vollmer, General Director of Finance at BNSF, the railroad benefited not only in terms of dollars but also in finding the right partner for a specialized deal. “CapitalStream’s product helped us identify players that we wouldn’t have known about previously, while assisting us in the completion of a high-value deal,” he said. “Bid Management gave us a sophisticated yet easy to use tool to access the capital and leasing markets and communicate the type of deal that we were looking for.”
“This transaction demonstrates how CapitalStream’s web infrastructure helps businesses execute deals and cater to specific needs, all with the speed and efficiency of the Internet,” said Stephen Campbell, president and CEO of CapitalStream. “This kind of capability is why CapitalStream continues to be a leader in commercial finance automation.
CapitalStream provides a web infrastructure that automates the commercial finance industry. The company’s technology merges the efficiencies made possible by the Internet with the trusting relationships required in sensitive money-based transactions. Through a sophisticated profiling capability, CapitalStream’s Bid Management allows companies to conduct financing, even in a bid environment. With this profiling feature, each company involved in the transaction is matched with the other participants’ areas of expertise. Credit profiles, deal size preferences, asset preferences and other relationship-related variables that are important in the equipment financing industry are matched through the CapitalStream system. Bid Management is designed to move both efficiency and trust into the world of complex financing deals.
BNSF initially sought out CapitalStream’s capabilities because both companies have a long-standing relationship with Babcock & Brown, a leading investment bank that specializes in managing large asset-based and project-based financings and acquisitions. Babcock & Brown and CapitalStream previously worked together to develop advanced online applications to help customers manage the middle market of equipment and asset-based financings.