FreightCar America, Inc. Announces Receipt of Stockholder Approval for Issuance of Warrant and Funding of New Term Loan
November 24 2020 - 4:10PM
FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or
the “Company”) today announced that, at its Special Meeting of
Stockholders (the “Special Meeting”), FreightCar America
stockholders approved the issuance of a warrant under its
previously announced new secured term loan facility with financing
partner CO Finance LVS VI LLC (the “Lender”), as well as the
funding of the term loan under the facility.
“I want to express our gratitude to the
stockholders of FreightCar America for voting today to approve the
new term loan financing, effectively securing the future of our
company and putting FreightCar America in a position to succeed and
thrive going forward,” said Jim Meyer, Chief Executive Officer of
FreightCar America. “The new financing arrangement, in partnership
with our lender, marks the last essential step in the competitive
repositioning of our business operations. This new secured term
loan will not only help support our capital needs for production
and future operational expansions at our single production facility
in Castaños, Mexico, but it effectively enables the Company to
execute on our strategic repositioning and growth strategy. We are
thankful for the support of our stockholders as FreightCar America
embarks on a path towards meaningful stockholder value
creation.”
About FreightCar America
FreightCar America, Inc. manufactures a wide
range of railroad freight cars, supplies rail car parts and leases
freight cars through its FreightCar America Leasing Company
subsidiaries. FreightCar America designs and builds high-quality
rail cars, including bulk commodity cars, covered hopper cars,
intermodal and non-intermodal flat cars, mill gondola cars, coil
steel cars, boxcars, coal cars and also specializes in the
conversion of rail cars for repurposed use. It is headquartered in
Chicago, Illinois and has facilities in the following locations:
Cherokee, Alabama; Castaños, Mexico; Johnstown, Pennsylvania; and
Shanghai, People’s Republic of China. More information about
FreightCar America is available on its website at
www.freightcaramerica.com.
Forward-Looking
Statements
This press release may contain statements
relating to our expected financial performance and/or future
business prospects, events and plans that are “forward-looking
statements” as defined under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press
release. Our actual results may differ materially from the results
described in or anticipated by our forward-looking statements due
to certain risks and uncertainties. These potential risks and
uncertainties include, among other things: risks relating to the
potential financial and operational impacts of the COVID-19
pandemic; the Shoals facility, including the facility not meeting
internal assumptions or expectations and unforeseen liabilities
from Navistar;; the cyclical nature of our business; adverse
economic and market conditions; fluctuating costs of raw materials,
including steel and aluminum, and delays in the delivery of raw
materials; our ability to maintain relationships with our suppliers
of railcar components; our reliance upon a small number of
customers that represent a large percentage of our sales; the
variable purchase patterns of our customers and the timing of
completion, delivery and customer acceptance of orders; the highly
competitive nature of our industry; the risk of lack of acceptance
of our new railcar offerings by our customers; and other
competitive factors. We expressly disclaim any duty to provide
updates to any forward-looking statements made in this press
release, whether as a result of new information, future events or
otherwise.
Investor & Media
Contact
Alpha IR GroupJoe Caminiti or Elizabeth
Steckel312-445-2870RAIL@alpha-ir.com
FreightCar America (NASDAQ:RAIL)
Historical Stock Chart
From Mar 2024 to Apr 2024
FreightCar America (NASDAQ:RAIL)
Historical Stock Chart
From Apr 2023 to Apr 2024