FreightCar America gets $60 million revolver, downsizes exiting revolver to $50 million

By Sara Rosenberg

New York, Oct. 6 - FreightCar America Inc. closed on a new $60 million senior secured revolving credit facility due March 31, 2012 and reduced the size of its existing revolver to $50 million from $100 million, according to an 8-K filed with the Securities and Exchange Commission Monday.

Bank of America acted as the lead arranger, bookrunner and administrative agent on the new revolver that was completed on Sept. 30.

Pricing on the new revolver is Libor plus 200 basis points for the first two years, stepping up to Libor plus 250 bps thereafter.

There is a 30 bps commitment fee.

The new revolver, which was obtained through the company's subsidiary JAIX Leasing Co., will be used for general corporate purposes, including the financing of railcars to be leased.

With the reduction in the existing revolver size also came an increase in pricing to a range of Libor plus 150 bps to 225 bps depending on availability.

LaSalle is the administrative agent on the existing revolver, which was amended on Sept. 30.

FreightCar is a Chicago-based manufacturer of railroad freight cars, with particular expertise in coal-carrying railcars.

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