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Revolving Credit Facility
12 Months Ended
Dec. 31, 2017
Revolving Credit Facility [Abstract]  
Revolving Credit Facility

Note 12 – Revolving Credit Facility



On June 13, 2016, the Company amended the credit agreement dated as of July 26, 2013 (as so amended, the “Credit Agreement”), by and among FreightCar and certain of its subsidiaries, as borrowers and guarantors (together, the “Borrowers”), and Bank of America, N.A., as lender, administrative agent, swingline lender and letter of credit issuer (the “Bank”), to, among other things, extend the term of the Credit Agreement to July 26, 2019.

The Credit Agreement contains a $50,000 senior secured revolving credit facility (the “Revolving Credit Facility”) and a sub-facility for letters of credit not to exceed the lesser of $30,000 and the amount of the senior secured revolving credit facility at such time.  The Revolving Credit Facility can be used for general corporate purposes, including working capital.  Under the Credit Agreement, revolving loans outstanding will bear interest at a rate of LIBOR plus an applicable margin of between 1.25% and 1.75% depending on the Company’s consolidated leverage ratio or at a base rate, as selected by the Company.  Base rate loans will bear interest at the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate or (c) LIBOR plus 1.00%.  The Company is required to pay a non-utilization fee of between 0.10% and 0.25% on the unused portion of the revolving loan commitment depending on the Company’s quarterly average balance of unrestricted cash and the Company’s consolidated leverage ratio.  Borrowings under the Revolving Credit Facility are secured by a first priority perfected security interest in substantially all of the Borrowers’ assets excluding railcars held by the Company’s railcar leasing subsidiary, JAIX.  The Borrowers also have pledged all of the equity interests in the Company’s direct and indirect domestic subsidiaries as security for the Revolving Credit Facility.  The Credit Agreement has both affirmative and negative covenants, including, without limitation, a negative covenant requiring a maximum consolidated net leverage ratio of 2.50:1.00 and limitations on indebtedness, liens and investments.  The Credit Agreement also provides for customary events of default.

As of December 31, 2017 and 2016, the Company had no borrowings under the Revolving Credit Facility.  As of December 31, 2017 and 2016, the Company had $5,452 and $5,720, respectively, in outstanding letters of credit under the Revolving Credit Facility and therefore had $44,548 and $44,280, respectively, available for borrowing under the Revolving Credit Facility.