Rand Logistics Purchases Previously Leased Vessel
26 März 2007 - 10:30PM
Business Wire
Rand Logistics Inc. (NASDAQ: RLOG, RLOGW, RLOGU) today announced
that it purchased the Manistee, a self-unloading bulk carrier, for
$2.2 million. The Company previously leased the boat from a
subsidiary of Sand Products Corporation, and financed the purchase
through debt with its existing lender, GE Capital Corporation.
Laurence Levy, Chairman and CEO of Rand Logistics, stated, �We are
pleased to have completed this transaction, which will be accretive
to earnings. The purchase of the Manistee eliminates�$350,000 of
annual lease expense, which would have grown to $500,000 after
March 31, 2008. The annual interest expense on the $2.2 million of
added borrowings will be significantly less than the alternative of
continuing to lease the vessel. Additionally, we were also able to
reduce the interest rate for our overall U.S. and Canadian
borrowings by 50 basis points, which produces further annual
savings of approximately $100,000. We remain confident in Rand�s
strong fleet and market position on the Great Lakes.� About Rand
Logistics Rand Logistics, Inc. is a leading provider of bulk
freight shipping services throughout the Great Lakes region.
Through its subsidiaries, the Company operates a fleet of eleven
self-unloading bulk carriers, including nine River Class vessels
and one River Class self-unloading tug/barge unit. The Company is
the only carrier able to offer significant domestic port-to-port
services in both Canada and the U.S. on the Great Lakes. The
Company�s vessels operate under the U.S. Jones Act � which dictates
that only ships that are built, crewed and owned by U.S. citizens
can operate between U.S. ports � and the Canada Marine Act � which
requires Canadian commissioned ships to operate between Canadian
ports. Forward-Looking Statements This press release may contain
forward-looking statements (within the meaning of the Private
Securities Litigation Reform Act of 1995) concerning the Company
and its operating subsidiaries. Forward-looking statements are
statements that are not historical facts, but instead statements
based upon the current beliefs and expectations of management of
the Company. Such forward-looking statements are subject to risks
and uncertainties, which could cause actual results to differ from
the results included in such forward-looking statements.
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