Rand Logistics obtains $170 million revolver to refinance senior debt

By Marisa Wong

Madison, Wis., March 30 – Rand Logistics, Inc. announced it has closed a $170 million revolving loan facility, which refinanced about $102 million of its senior secured debt and increased credit availability.

The senior debt financing was provided by a syndicate led by Bank of America, according to a press release.

The company said that the refinancing significantly increases its liquidity; reduces its cost of senior secured debt and total debt by about 125 basis points and 75 bps, respectively; eliminates all mandatory debt amortization payments through 2019; reduces annual cash interest expense by about $1.5 million per year and extends the maturity of its senior secured debt facility through September 2019.

“This opportunistic refinancing meaningfully reduces both our blended cost of debt and preferred stock and our annual debt service payments, while also providing us with significant incremental liquidity,” Joseph McHugh, chief financial officer of Rand, commented in the release.

“As the operating performance of our business continues to improve we have been able to reduce our cost of capital. Since Dec. 31, 2013 we have reduced our all-in cost of debt and preferred stock capital by approximately 178 bps for the benefit of our shareholders.”

Based in New York, Rand provides bulk freight shipping services in the United States and Canada.

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