Algoma announces refinancing of long-term debt

(Posted on 03/07/26)

Algoma Central Corporation, a leading provider of marine transportation services, has announced that it has completed an amendment and expansion of its senior secured financing facilities. Proceeds from the expanded financing facilities will be used to repay the Bank Revolver (as defined below), to finance the Company’s investment opportunities, and for general corporate purposes.

Algoma Central Corporation is a global provider of marine transportation, owning and operating dry and liquid bulk carriers that serve critical industries throughout the Great Lakes-St. Lawrence Region and internationally.

The Company has entered into an amendment of its revolving bank credit agreement with a syndicate of six banks (the “Bank Revolver”), providing access to $634 million (all amounts in Canadian dollar equivalent) of credit, an increase of $182 million over the existing credit facility. The amendment also extends the maturity of the Bank Revolver from 2027 to 2031. Placement of the amended and extended Bank Revolver was led by Canadian Imperial Bank of Commerce.

In addition to the amendment and extension of the Bank Revolver, the expanded financing facilities also include $183 million raised in a private placement of senior secured notes payable by the Company (the “New Notes”). The New Notes, which have been issued in both US dollar and Canadian dollar tranches, have terms between three and five years and bear interest rates ranging from 4.45% to 5.49% per annum, with an overall effective rate at closing of 4.99%. The New Notes have been issued to a group of Canadian and US insurance companies. RBC Capital Markets, LLC led the issuance of the New Notes on behalf of the Company. Proceeds of the New Notes will be used to repay $183 million of outstanding advances under the Bank Revolver.

Borden Ladner Gervais LLP acted as counsel to the Company.

Both the New Notes and the Bank Revolver are secured by the material marine assets of Algoma and by guarantees pledged by the material subsidiaries of the Company.

The New Notes were offered and sold on a private placement basis to accredited investors in the United States and in certain provinces of Canada. The New Notes have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the New Notes in Canada will be made on a basis that is exempt from the prospectus requirements of such securities laws.

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