San Francisco: Rand Logistics, which provides bulk freight shipping services for commodities in the Great Lakes region of the US and Canada, announced on Monday that it has closed a $170m revolving loan facility.
The deal refinances around $102m of Rand’s senior secured debt and increases its credit availability.
The senior debt financing was provided by a syndicate of banks led by Bank of America and will reduce New York-headquartered Rand’s annual interest bill by $1.5m.
Said the firm’s chief financial officer Joseph McHugh: “We are pleased to consummate the refinancing of our senior secured debt facility. As the operating performance of our business continues to improve we have been able to reduce our cost of capital. Since December 31, 2013 we have reduced our all-in cost of debt and preferred stock capital by approximately 178 basis points for the benefit of our shareholders.”
The loan agreement significantly improves Rand’s liquidity.
Through its subsidiaries, the company operates a fleet of 10 self-unloading bulk carriers. It is strongly positioned in the region because its vessels comply with both the Jones Act (which reserves domestic water-borne commerce in the US to vessels that are US owned, built and crewed) and the Canada Coasting Trade Act (which reserves similar domestic commerce to ships registered in Canada and crewed by Canadians).