2023-03-27 06:55:33 ET
- FreightCar America ( NASDAQ: RAIL ) entered into an agreement to issue new non-convertible preferred stock to its current financial partner; issuance is expected to occur on May 22, 2023.
- The company will issue ~85K shares of new non-convertible preferred stock to its current financial partner at a purchase price of $1K/share.
- Proceeds will be used to repay in-full the company’s outstanding term loan debt, provide additional working capital and enhance the company’s future operating cash flows to invest in growth initiatives.
- Led by the refinancing, the company expects ~$10M of improvement in annual operating cash flows due to savings on its asset-based lending facility and deferred cash dividends.
- "This transaction significantly improves our balance sheet, lowers our interest costs and generates additional operating cash flow, allowing us to continue to invest in the business. Demand for our railcars is strong and this transaction supports the next increment of our planned growth," CFO Mike Riordan commented.
For further details see:
FreightCar America to issue non-convertible preferred stock for reducing debt