Algoma Central Corporation Announces Special Dividend of $2.65 Per Share
Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced that the Company’s Board of Directors authorized payment of a Special Dividend to shareholders of $2.65 per common share.
The dividend is payable on January 12, 2021 to shareholders of record on December 28, 2020.
“Algoma has invested approximately $750 million over the past ten years and our shareholders have been extremely supportive of our fleet renewal and fleet expansion ambitions,” said Gregg Ruhl, President and Chief Executive Officer of Algoma. “The very attractive refinancing that we completed last week now affords us the ability to reward our shareholders for this support. Algoma’s business and balance sheet are strong and we are well positioned to meet our objective of being the Marine Carrier of Choice™ for our customers, suppliers, partners,
Algoma Central Corporation Announces Refinancing of Long-Term Debt
Algoma Central Corporation (“Algoma” or the “Company”) (TSX:ALC), a leading provider of marine transportation services, today announced that it has completed a refinancing of its senior secured credit facilities that were due to mature during 2021, securing highly favourable terms. Proceeds of the new issue will be used to repay the maturing senior secured notes and revolving bank credit agreement, to finance the Company’s capital expenditure plans, and for general corporate purposes.
The new credit facilities include $316 million (all amounts in Canadian dollar equivalent) raised in a private placement of senior secured notes payable (the “New Notes”). The New Notes, which have been issued in both US dollar and Canadian dollar tranches, have terms between seven and 15 years and bear interest rates ranging from 3.37% to 4.01% per annum. With an overall effective rate at closing of 3.80%, the New Notes