TX Rail Products, Inc. Secures Credit Line Expansion at Attractive Terms to Accelerate Growth
TX Rail Products (TXRP) has announced a significant expansion of its credit line from $500,000 to $1 million with its existing lender at prime rate plus 1%. The expanded facility aims to strengthen the company's supply chain and meet growing customer demand for rail products.
The company has implemented strategic initiatives including securing materials from regions unaffected by U.S. tariffs, providing cost stability for 8-12 months. Additionally, TXRP has expanded its delivery capacity to enhance logistics capabilities and ensure timely customer service as operations scale.
TX Rail Products (TXRP) ha annunciato un'importante espansione della sua linea di credito, passando da 500.000 a 1 milione di dollari con il suo attuale prestatore, al tasso di interesse di riferimento più 1%. L'espansione della linea di credito mira a rafforzare la catena di approvvigionamento dell'azienda e a soddisfare la crescente domanda dei clienti per i prodotti ferroviari.
L'azienda ha implementato iniziative strategiche, tra cui la fornitura di materiali da regioni non colpite dai dazi statunitensi, garantendo stabilità dei costi per 8-12 mesi. Inoltre, TXRP ha ampliato la sua capacità di consegna per migliorare le capacità logistiche e garantire un servizio clienti tempestivo man mano che le operazioni si espandono.
TX Rail Products (TXRP) ha anunciado una expansión significativa de su línea de crédito, aumentando de 500,000 a 1 millón de dólares con su prestamista actual, a la tasa de interés preferencial más 1%. La instalación ampliada tiene como objetivo fortalecer la cadena de suministro de la empresa y satisfacer la creciente demanda de los clientes por productos ferroviarios.
La empresa ha implementado iniciativas estratégicas, incluyendo la obtención de materiales de regiones no afectadas por los aranceles de EE. UU., proporcionando estabilidad de costos durante 8-12 meses. Además, TXRP ha ampliado su capacidad de entrega para mejorar las capacidades logísticas y asegurar un servicio al cliente oportuno a medida que las operaciones se escalan.
TX Rail Products (TXRP)는 기존 대출 기관과의 신용 한도를 50만 달러에서 100만 달러로 확대했다고 발표했습니다. 이 금리는 기준금리 플러스 1%입니다. 확대된 시설은 회사의 공급망을 강화하고 철도 제품에 대한 고객 수요 증가에 대응하는 것을 목표로 합니다.
회사는 미국 관세의 영향을 받지 않는 지역에서 자재를 확보하는 것을 포함한 전략적 이니셔티브를 구현하여 8-12개월 동안 비용 안정성을 제공합니다. 또한 TXRP는 물류 능력을 향상시키고 운영이 확장됨에 따라 적시 고객 서비스를 보장하기 위해 배송 능력을 확대했습니다.
TX Rail Products (TXRP) a annoncé une expansion significative de sa ligne de crédit, passant de 500 000 à 1 million de dollars avec son prêteur actuel, à un taux d'intérêt préférentiel plus 1 %. L'installation élargie vise à renforcer la chaîne d'approvisionnement de l'entreprise et à répondre à la demande croissante des clients pour les produits ferroviaires.
L'entreprise a mis en œuvre des initiatives stratégiques, notamment la sécurisation des matériaux provenant de régions non touchées par les tarifs douaniers américains, garantissant une stabilité des coûts pendant 8 à 12 mois. De plus, TXRP a élargi sa capacité de livraison pour améliorer ses capacités logistiques et garantir un service client rapide à mesure que les opérations se développent.
TX Rail Products (TXRP) hat eine bedeutende Erweiterung seiner Kreditlinie von 500.000 auf 1 Million Dollar bei seinem bestehenden Kreditgeber zu einem Zinssatz von Prime plus 1% angekündigt. Die erweiterte Kreditlinie zielt darauf ab, die Lieferkette des Unternehmens zu stärken und der wachsenden Kundennachfrage nach Schienenprodukten gerecht zu werden.
Das Unternehmen hat strategische Initiativen umgesetzt, darunter die Sicherstellung von Materialien aus Regionen, die nicht von US-Zöllen betroffen sind, um eine Kostenstabilität für 8-12 Monate zu gewährleisten. Darüber hinaus hat TXRP seine Lieferkapazität erweitert, um die Logistikfähigkeiten zu verbessern und einen zeitgerechten Kundenservice sicherzustellen, während die Betriebe skaliert werden.
- Credit line doubled from $500,000 to $1 million
- Favorable interest rate secured at just 1% above prime
- Strategic material sourcing hedges against tariff-related price increases for 8-12 months
- Expanded delivery capacity to improve logistics capabilities
- Company trades as penny stock on OTC Markets Pink sheets
- Exposure to U.S. tariffs could impact material costs
- Reliance on CEO-provided financing indicates potential capital constraints
Takes Steps to Strengthen Operations and Manage Costs
ASHLAND, Ky., April 02, 2025 (GLOBE NEWSWIRE) -- TX Rail Products, Inc. (OTC Markets PINK: TXRP), a supplier of rail and rail products to the U.S. coal mining industry, short line railroads and tunneling contractors, today announced the signing of increasing the Line of Credit with its existing lender to support its growth strategy. The company has also implemented key initiatives to strengthen operations and effectively manage costs.
New Credit Line
The new credit line expands total availability from
Operational Updates
In anticipation of changing market conditions, TX Rail Products proactively secured materials and supplies from regions unaffected by recent U.S. tariffs to hedge against future price increases. This was a strategic move to support cost stability for at least the next 8 to 12 months and position the company competitively from a pricing perspective despite market fluctuations.
Furthermore, in response to growing business demand, the company also expanded its delivery capacity to improve its logistics capabilities, enhance efficiency and ensure timely service to customers as the company scales its operations.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, “Increasing our credit line, securing essential materials at favorable pricing and investing in our delivery infrastructure reinforces our ability to sustain our competitive position and deliver future growth. As we execute our operational roadmap, these milestones demonstrate our commitment to smart, sustainable expansion while maintaining a strong and resilient foundation.”
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect", "plan", "assume" and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on the Company's current assumptions regarding future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in "penny stocks;" the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1933, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be applied to us at certain times.
Contacts
Investor Relations:
Brett Maas
Hayden IR
txrp@haydenir.com
646-536-7331
William “Buck” Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
FAQ
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