CanAm Coal Refinances $15.6MM Mining Equipment Debt
Published July 9, 2012
Categories: Industry News
CanAm Coal announced that is has refinanced substantially all of its equipment loans with a major U.S. bank.
The company and its affiliates, Birmingham Coal & Coke, Cahaba Contracting & Reclamation and RAC Mining (collectively referred to as the CanAm Group), operate a significant fleet of mining equipment and, prior to this arrangement, equipment financing was provided by equipment dealers and local Alabama-based banks.
The agreement refinances a total of $15.6 million of CanAm Group’s equipment debt over a term of 54 months at an annual interest rate of 3.25%. The company said this arrangement will reduce annual loan payments by approximately $800,000 and lower annual interest charges by approximately $200,000. The equipment facility is secured by the underlying equipment.
“This represents another major milestone for our Company”, said Jos De Smedt, president and COO of CanAm. “Attracting a major US financial institution, which is among the top 20 largest Banks in the U.S. based on assets, is a clear demonstration that we have built a stable and solid business with a great long term future.”
CanAm’s main activities and assets include its four operating coal mines in Alabama and the Buick Coal Project which holds significant coal resources in Colorado.