Rand Logistics, Inc. announced today that it has closed a $170.0 million revolving loan facility which refinanced approximately $102.0 million of the company's senior secured debt and increased credit availability.
Rand said in a statment that the refinancing accomplishes the following financial objectives:
-- Significantly increases the company's liquidity;
-- Reduces the company's cost of senior secured debt and total debt by approximately 125 and 75 basis points, respectively;
-- Eliminates all mandatory debt amortization payments through 2019;
-- Reduces annual cash interest expense by approximately $1.5 million per year;
-- Extends the maturity of the senior secured debt facility through September 2019.
"We are pleased to consummate the refinancing of our senior secured debt facility," commented Joseph McHugh, Chief Financial Officer of Rand. "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."
McHugh also said that since December 31, 2013, Rand has reduced its all-in cost of debt and preferred stock capital by approximately 178 basis points for the benefit of shareholders.
The senior debt financing was provided by a syndicate led by Bank of America. The new credit agreement will be filed with the Securities and Exchange Commission on a Current Report on Form 8-K and will be available at www.randlogisticsinc.com in the investors section under "SEC filings."
Rand Logistics, Inc. is a provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the company operates a fleet of four conventional bulk carriers and eleven self-unloading bulk carriers including three tug/barge units.