FreightCar America secures a $35 million credit facility to enhance financial flexibility and support growth initiatives.
Quiver AI Summary
FreightCar America, Inc. has completed a new Asset-Based Lending (ABL) credit facility with Bank of America, providing a $35 million revolving line of credit. This new facility enhances the company's financial flexibility, lowers borrowing costs by approximately 35% compared to its previous credit arrangement, and is structured to mature in nearly 4 years and 9 months. The facility aims to optimize working capital and support FreightCar America's growth strategy. CFO Michael Riordan expressed enthusiasm about the partnership with Bank of America, highlighting the agreement as a significant step in their refinancing efforts.
Potential Positives
- Secured a new $35 million Asset-Based Lending credit facility with Bank of America, enhancing liquidity and working capital optimization.
- The new facility features a lower interest rate of SOFR + 175, resulting in a 35% reduction in borrowing costs compared to the previous credit facility.
- The credit facility's structure, with a maturity of nearly 5 years, provides significant financial flexibility to support ongoing growth and strategic initiatives.
- This agreement is a key step in the company's comprehensive refinancing efforts, improving overall financial management and cost efficiency.
Potential Negatives
- The company is heavily dependent on the new credit facility for managing its financial flexibility and working capital needs, indicating potential cash flow issues.
- The emphasis on refinancing efforts may suggest past financial instability or pressure to restructure existing debts.
- Forward-looking statements highlight several significant risks, including cyclical business trends, reliance on a small customer base, and fluctuations in raw material costs, which could significantly impact future performance.
FAQ
What is the new credit facility amount for FreightCar America?
The new Asset-Based Lending credit facility provides FreightCar America with a $35 million revolving credit line.
How does the new credit facility impact borrowing costs?
The new facility reduces credit borrowing costs by approximately 35% compared to the previous ABL credit facility.
Who is FreightCar America's partner for the new credit facility?
FreightCar America has partnered with Bank of America for the newly closed credit facility.
What is the maturity period of the new credit facility?
The new credit facility has a maturity of 4 years and 9 months from the closing date.
How will the credit facility enhance FreightCar America's financial flexibility?
The facility optimizes working capital needs and supports the company's ongoing growth and strategic initiatives.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RAIL Insider Trading Activity
$RAIL insiders have traded $RAIL stock on the open market 5 times in the past 6 months. Of those trades, 2 have been purchases and 3 have been sales.
Here’s a breakdown of recent trading of $RAIL stock by insiders over the last 6 months:
- JAMES R MEYER purchased 23,400 shares for an estimated $251,316
- WILLIAM D GEHL has made 0 purchases and 2 sales selling 22,500 shares for an estimated $198,300.
- MALCOLM F MOORE sold 10,000 shares for an estimated $72,000
- NIGRIS FELAN JOSE DE purchased 4,000 shares for an estimated $40,741
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RAIL Hedge Fund Activity
We have seen 43 institutional investors add shares of $RAIL stock to their portfolio, and 28 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ANCORA ADVISORS LLC added 302,620 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,711,475
- MARSHALL WACE, LLP added 267,778 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,399,290
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 255,811 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,292,066
- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 216,307 shares (+125.2%) to their portfolio in Q4 2024, for an estimated $1,938,110
- MINERVA ADVISORS LLC removed 200,099 shares (-47.7%) from their portfolio in Q4 2024, for an estimated $1,792,887
- WITTENBERG INVESTMENT MANAGEMENT, INC. removed 163,147 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $1,760,356
- RENAISSANCE TECHNOLOGIES LLC added 158,700 shares (+128.5%) to their portfolio in Q4 2024, for an estimated $1,421,952
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Expanded credit facility enhances borrowing capacity and reduces cost of capital
Further enhances financial flexibility and ability to support growth strategy
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.
Highlights
The Company secured a new $35 million ABL credit facility with Bank of America
New facility structured with a maturity of 4 years and 9 months from the closing date
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
The facility will provide financial flexibility to support ongoing growth and strategic initiatives
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.”
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.
About FreightCar America
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 chain. To learn more about FreightCar America, visit
www.freightcaramerica.com
.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers; and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
Investor Contact | RAILIR@Riveron.com |
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