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Covia has received a commitment from PNC Bank for a new, 3-year credit facility for up to $85 million.

The new facility is expected to bear interest of LIBOR, plus 1.75%, and be secured by the company’s U.S. accounts receivable, according to a company news release. In conjunction with the commitment, Covia has voluntarily canceled its $200 million revolving standby credit facility that contained restrictive covenants and carried a higher interest rate, the release states.

Additionally, Covia and certain railcar manufacturers have entered into definitive agreements to restructure the company’s railcar purchase obligations which were scheduled to mature in 2020 and 2021. The agreements terminated railcar purchase obligations of approximately $195 million in exchange for immaterial consideration, which included cash and lease modifications to a small portion of the fleet. Covia no longer has any minimum railcar purchase obligations.

In addition to the newly committed $85 million revolving credit facility, Covia is evaluating additional sources of liquidity to increase the total size of its standby liquidity, the release states. The company is targeting up to an additional $75 million in standby liquidity through secured facilities, which are expected to close in 2020.

“We are very pleased with the progress we have made to improve our financial flexibility,” Covia Chairman, President and CEO Richard Navarre said in a statement. “These actions, combined with our recent repurchase of $63 million in debt and our focus on lowering operating costs and working capital, are expected to provide Covia with enhanced financial strength.”

Covia is a provider of mineral-based material solutions for the industrial and energy markets. The Independence-based company was created through the June 2018 merger of Unimin and Fairmount Santrol.