FreightCar America, Inc. Announces Agreement to Redeem All Outstanding Preferred Shares with New Term Loan

Core Viewpoint - FreightCar America has completed a new term loan facility that significantly reduces its cost of capital by approximately 40%, enhancing its financial flexibility and supporting its growth strategy [1][3][5] Financial Details - The company closed a $115 million 4-year term loan agreement on December 31, 2024, which will be used to redeem all outstanding shares of Series C Preferred Stock and settle accrued dividends [5] - The term loan is priced at SOFR + 600, leading to savings of approximately$9.2 million in the first year, equating to about $0.26 per share on a fully diluted basis [5] Strategic Implications - The completion of this financing arrangement is expected to improve the company's capital structure and lower borrowing costs, thereby enhancing cash flow generation and allowing for more confident execution of its growth strategy [3]