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FreightCar America, Inc. Announces New $35 Million Asset-Based Lending Credit Facility
Expanded credit facility enhances borrowing capacity and reduces cost of capital Further ...
About this update from Railtown Ai Technologies Inc
[{"type":"text","content":"FreightCar America, Inc. Announces New $35 Million Asset-Based Lending Credit Facility\n\n\n\n\n Expanded credit facility enhances borrowing capacity and reduces cost of capital\n \n\n\n\n Further enhances financial flexibility and ability to support growth strategy\n \n\n\n CHICAGO, Feb. 18, 2025 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today closed a new Asset-Based Lending (“ABL”) credit facility with Bank of America. The new ABL credit agreement will provide FreightCar America with a $35 million revolving credit facility and be used to optimize working capital needs and improve financial flexibility.\n \n\n\n Highlights\n \n\n\n\n The Company secured a new $35 million ABL credit facility with Bank of America\n \n\n New facility structured with a maturity of 4 years and 9 months from the closing date\n \n\n Provides a lower interest rate of SOFR + 175, reducing credit facility borrowing costs by approximately 35% compared to the Company’s previous ABL credit facility\n \n\n The facility will provide financial flexibility to support ongoing growth and strategic initiatives\n \n\n\n Michael Riordan, Chief Financial Officer of FreightCar America, commented, “We are excited to partner with Bank of America to announce the closing of a new ABL revolving credit facility. This agreement marks another important step in our comprehensive refinancing efforts, which enhances our ability to manage working capital needs and optimize our borrowing costs.”\n \n\n For additional information about the Company’s update, please refer to the Company’s Form 8-K filed today with the Securities and Exchange Commission.\n \n\n\n About FreightCar America\n \n\n\n FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chai...