FreightCar America, Inc. announces receipt of shareholders
CHICAGO, Nov. 24, 2020 (GLOBE NEWSWIRE) – FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”) announced today that its special meeting of shareholders (the “Special Meeting” ), the shareholders of FreightCar America approved the issuance of a warrant under their previously announced new secured credit facility with financing partner CO Finance LVS VI LLC (the “Lender”) and the financing of the term loan under the facility.
“I would like to thank the shareholders of FreightCar America for agreeing today to the new loan financing that will effectively secure the future of our company and enable FreightCar America to thrive into the future,” said Jim Meyer, Chief Executive Officer of FreightCar America. “The new financing agreement in partnership with our lender is the final major step in the competitive repositioning of our business operations. This new secured loan will not only help meet our capital requirements for production and future operational expansion at our only manufacturing facility in Castaños, Mexico, but it will also effectively enable the company to implement our strategic repositioning and growth strategy. We are grateful for our shareholders’ support as FreightCar America drives meaningful shareholder value. “
About FreightCar America
FreightCar America, Inc. manufactures a wide variety of rail freight cars, supplies rail car parts and rents freight cars through its subsidiaries, FreightCar America Leasing Company. FreightCar America designs and builds high-quality freight cars, including bulk freight cars, covered filling cars, intermodal and non-combined flat cars, mill gondola cars, coil steel cars, covered freight cars, coal cars and can also be used on the conversion of railcars for repurposed. 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. For more information on FreightCar America, visit the website at www.freightcaramerica.com.
Forward–Look for statements
This press release may contain statements about our expected financial performance and / or future business prospects, events, and plans that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, assumptions made only as of the date of this press release. Due to certain risks and uncertainties, our actual results could differ materially from the results described or expected in our forward-looking statements. These potential risks and uncertainties include, but are not limited to: risks related to the potential financial and operational impact of the COVID-19 pandemic; the Shoals facility, including facility failing internal assumptions or expectations and Navistar’s unforeseen liabilities ;; the cyclical nature of our business; unfavorable economic and market conditions; fluctuating raw material costs, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our railcar component suppliers; our reliance on a small number of customers who represent a large percentage of our sales; the variable purchasing behavior of our customers and the time of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk that our new railcar offers will not be accepted by our customers; and other competitive factors. We expressly disclaim any obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
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