Algoma Central Corporation, a leading provider of marine transportation services, has completed the refinancing and expansion of its long-term senior secured financing facilities, strengthening its financial position and enhancing its ability to pursue future growth opportunities. The revised financing structure includes an expanded revolving bank credit facility and a new private placement of senior secured notes. The additional funding will be used to refinance existing borrowings, support strategic investments and provide greater financial flexibility for the company’s ongoing operations and expansion plans.
As part of the transaction, Algoma amended its revolving credit agreement with a syndicate of six financial institutions. The revised revolving credit facility has increased to C$634 million, representing an expansion of C$182 million compared with the previous arrangement. The agreement also extends the facility’s maturity from 2027 to 2031, providing the company with longer-term access to capital. The financing was arranged by the Canadian Imperial Bank of Commerce, which acted as lead institution for the transaction.
Complementing the expanded revolving credit facility, Algoma also completed a C$183 million private placement of senior secured notes. Issued in both Canadian and U.S. dollar denominations, the notes carry maturities ranging from three to five years. Interest rates on the notes range between 4.45% and 5.49%, resulting in an effective blended rate of 4.99% at closing.
The notes were subscribed by a group of Canadian and US-based insurance companies. RBC Capital Markets, LLC acted as lead placement agent for the issuance. Proceeds from the private placement have been applied toward repaying C$183 million of outstanding borrowings under the revolving credit facility. This refinancing strategy allows the company to diversify its funding sources while maintaining sufficient liquidity to pursue future investments and meet general corporate requirements.
The financing package is secured by Algoma’s principal marine assets and supported by guarantees from the company’s key operating subsidiaries. Legal counsel for the transaction was provided by Borden Ladner Gervais LLP. The senior secured notes were issued through a private placement to accredited investors in the United States and selected Canadian provinces. The securities have not been registered for public distribution under Canadian securities regulations or under the U.S. Securities Act of 1933 and were issued in accordance with applicable private placement exemptions.
The refinancing strengthens Algoma’s capital structure at a time when the company continues to invest in fleet modernization and long-term business development. By extending debt maturities and increasing available credit, the company is better positioned to respond to market opportunities while maintaining financial stability.
Algoma Central Corporation operates one of the largest fleets serving the Great Lakes–St. Lawrence Seaway and international markets. The company provides marine transportation services through its dry bulk and liquid bulk carriers, supporting industries that rely on the efficient movement of raw materials and essential commodities. Alongside its commitment to operational excellence, Algoma continues to invest in fuel-efficient vessels, advanced marine technologies and sustainable shipping solutions that enhance productivity, strengthen supply chains and contribute to long-term economic growth.
