FreightCar America, Inc. has 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 that can be used to optimize working capital needs and improve financial flexibility.
The company said the facility, structured with a maturity of 4 years and 9 months from the closing date, would provide financial flexibility to support ongoing growth and strategic initiatives. It also offers a lower interest rate of Secured Overnight Financing Rate (SOFR) + 175, reducing borrowing costs by approximately 35% compared to the Company’s previous ABL credit facility.
“We are excited to partner with Bank of America to announce the closing of a new ABL revolving credit facility,” Michael Riordan, FreightCar America chief financial officer, said in a release. “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.”
