USA: Rand Logistics Completes Acquisition of Self-unloading Articulated Tug-barge Unit

Rand Logistics, Inc. announced that it has completed the previously announced acquisition of a Jones Act compliant, self-unloading articulated tug/barge unit. Concurrent with the closing, the Company placed an additional $25 million of long term debt to fund the acquisition and anticipated modifications to the acquired vessel, as well as for general corporate purposes.

Scott Bravener, President of Lower Lakes, commented, “We are particularly excited about the prospects for the newly acquired tug/barge unit, as we believe that it is the only Jones Act compliant self-unloading bulk carrier not currently operating on the Great Lakes of a size and configuration suitable for operation in our market. This acquisition marks the first time in many years that new capacity has been added to the river class segment of the U.S. Great Lakes market. This investment reaffirms our commitment to meeting our customers’ shipping requirements while also creating value for our shareholders.”

Bravener continued, “As an indication of the healthy customer demand that we are experiencing, this vessel is already fully booked under long term contracts for the 2012 sailing season and beyond. From an investment perspective, we believe that the cost of the vessel, after anticipated modifications, reflects an approximate 60% discount to the new build cost of a similarly sized vessel.”

The Company also announced that consistent with October, business conditions and operating performance remained strong in November. The Company continues to experience strong customer demand and based on current market conditions, certain of the Company’s vessels will be sailing into January.