FreightCar America, a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, closed a new asset-based lending 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 four years and nine 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
“We are excited to partner with Bank of America to announce the closing of a new ABL revolving credit facility,” Michael Riordan, chief financial officer of FreightCar America, said. “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.”
