Rand Logistics Inc. announced that its wholly-owned subsidiary,
Lower Lakes Towing, Ltd., acquired two conventional bulk carriers from the
Voyageur group of companies for $23.7m. Additionally, the company entered into a contract of affreightment with Voyageur for the exclusive use of a third vessel, and secured an option to acquire this vessel. Management anticipates the
three vessels will be immediately accretive to EBITDA and net income for Rand.
Lower Lakes management has negotiated or assumed long-term contracts
with premier grain and other companies that are both current and new
customers for these vessels. The majority of the cargo to be carried
on the vessels will be grain. Voyageur will continue to provide all
crew manning on the three vessels.
The acquisition was financed through a
U.S. $17.1m term loan increase from GE Canada Finance Holding
Company. The balance of the purchase price was paid with Rand cash on
hand, including cash raised as a result of recent exercises of Rand
warrants.