According to the Chicago-based freight car, railcar parts, and components manufacturer and supplier, the proceeds from the term loan will be used to redeem all 85,412 shares of Series C Preferred Stock that were outstanding and all accrued dividends as of Dec. 31, 2024.
The term loan is priced at SOFR + 600, which, FreightCar America says, “will reduce the company’s existing cost of capital by approximately 40%, resulting in savings of approximately $9.2 million in the first year, or approximately $0.26 per share on a fully diluted basis.”
“As further testament to the strength and momentum of FreightCar America, I am extremely pleased to announce that we have taken an important step to improve our capital structure and lower borrowing costs,” said FreightCar America Chief Financial Officer Mike Riordan. “The completion of this financing along with the retirement of our Series C Preferred Stock enhances our financial flexibility, cash flow generation and allows us to continue executing our growth strategy with even greater confidence and agility.”
