Covia took a series of actions to improve its financial flexibility, including a commitment from PNC Bank for a new three-year year credit facility for up to $85 million.

The new facility is expected to bear interest of LIBOR plus 1.75% and be secured by the company’s U.S. accounts receivable. In conjunction with the commitment, the company has voluntarily canceled its $200 million revolving standby credit facility that contained restrictive covenants and carried a higher interest rate.

In addition, the company and certain railcar manufacturers have entered into definitive agreements to restructure the company’s railcar purchase obligations which were scheduled to mature in 2020 and 2021. The agreements terminated railcar purchase obligations of approximately $195 million in exchange for immaterial consideration, which included cash and lease modifications to a small portion of the fleet. The company no longer has any minimum railcar purchase obligations.

In addition to the newly committed $85 million revolving credit facility, the company is evaluating additional sources of liquidity to increase the total size of its standby liquidity. The company is targeting up to an additional $75 million in standby liquidity through secured facilities, which are expected to close in 2020.

“We are very pleased with the progress we have made to improve our financial flexibility. These actions, combined with our recent repurchase of $63 million in debt and our focus on lowering operating costs and working capital, are expected to provide Covia with enhanced financial strength,” said Richard Navarre, Chairman, President and Chief Executive Officer of Covia.

Covia is a provider of mineral-based material solutions for the Industrial and Energy markets, representing the legacy and combined strengths from the June 2018 merger of Unimin and Fairmount Santrol.