FreightCar America announces agreement to redeem all outstanding preferred shares with new term loan

FreightCar America, Inc. (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today announced it has completed a new term loan facility. The proceeds from the term loan will be used to redeem all outstanding shares of Series C Preferred Stock, as well as settle all related accrued dividends.

Highlights:

• The Company closed a $115 million 4-year term loan agreement on December 31^st, 2024 (the “Term Loan”).
• Proceeds from the Term Loan were used to redeem all 85,412 shares of Series C Preferred Stock that were outstanding and all accrued dividends as of December 31^st, 2024.
• The Term Loan is priced at SOFR + 600, which will reduce the Company’s existing cost of capital by approximately 40%, resulting in savings of approximately $9.2 million in the first year, or approximately $0.26 per share on a fully diluted basis.

Mike Riordan, Chief Financial Officer of FreightCar America, commented, “As further testament to the strength and momentum of FreightCar America, I am extremely pleased to announce that we have taken an important step to improve our capital structure and lower borrowing costs. The completion of this financing along with the retirement of our Series C Preferred Stock enhances our financial flexibility, cash flow generation and allows us to continue executing our growth strategy with even greater confidence and agility.”