Florida East Coast Industries Completes New $150 Million Bank Credit Facility
biz.yahoo.com
Thursday February 24, 8:50 am ET
ST. AUGUSTINE, Fla., Feb. 24 /PRNewswire-FirstCall/ -- Florida East Coast Industries, Inc. announced today that it has entered into a new five-year, $150 million unsecured revolving credit facility, which replaces a $200 million revolving credit facility, which had no outstanding commitments and was set to expire on March 31, 2005. At the Company's discretion and subject to certain conditions contained in the agreement, the Company may increase the aggregate revolving commitments by up to $100 million. Bank of America, N.A. acted as the Lead Arranger and Administrative Agent for the new credit facility, while both Wachovia National Bank, N.A. and SunTrust Bank acted as Co-Syndication Agents and LaSalle Bank, N.A. acted as Documentation Agent.
The new revolving credit agreement provides a more favorable interest rate and terms than the previous facility. Under the new credit facility the Company will pay quarterly commitment fees, as applicable under the agreement, at a rate of 12.5 - 25.0 basis points. Borrowings under the credit agreement bear interest at a spread of 50 - 112.5 basis points plus a LIBOR Index. Currently, the commitment fee is 12.5 basis points and any borrowings will be at LIBOR plus 50 basis points.
"This credit facility provides us with liquidity and increased financial flexibility in support of our long-term growth strategy and will allow us to take advantage of future opportunities," said Robert W. Anestis, Chairman, President and Chief Executive Officer. "We are especially pleased with the confidence that our bankers have shown in the financial strength and business strategy of the Company." |
