Algoma Central Corporation has completed a refinancing program that will allow it to move forward with its fleet renewal program, as well as the acquisition of Upper Lakes Group Inc.'s interest in Seaway Marine Transport.
Sources for the funding include a $150-million, five-year revolving credit facility, to be provided by a syndicate of six banks, and 10-year senior secured notes, comprising two tranches, one for USD$75 million and one for CD$75 million.
The corporation plans to spend $300 million on six state-of-the-art Equinox Class vessels consisting of four full-sized self-unloading vessels and two full-sized gearless bulkers.
“The financing completed today is designed to provide the corporation with access to the funds necessary to complete this significant fleet renewal investment in our domestic dry-bulk fleet,” Algoma Central president and CEO Greg Wight said in a news release.
Wight said the fleet renewal, along with the acquisition of Upper Lakes Group's interests in Seaway Marine Transport, “confirms our substantial commitment to the future of our Canadian marine transportation activities on the Great Lakes-St. Lawrence Waterway.”
It is anticipated that the Equinox Class vessels will improve operating efficiency and environmental performance, carrying more cargo at faster speeds with lower fuel consumption and 40 per cent lower emissions than conventional ships, according to the release.
The first Equinox Class vessel is expected to start service in 2013, with additional ships following later in 2013 and 2014.
.jpeg;w=120;h=80;mode=crop)
