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Global Railway secures funds to purchase G&B Specialties

Global Railway Industries Ltd. recently completed a financing agreement, enabling the supplier to issue 3.7 million subscription receipts at $1.37 per receipt.

Each receipt entitles the holder to one Global Railway common share after the company purchases G&B Specialties Inc.

The agreement enables Trilwood Ltd. to become Global Railway's largest shareholder, owning about 24 percent of the supplier's stock.

Global Railway also recently secured a five-year, $2.4 million loan — the supplier plans to use all receipt and loan proceeds to acquire G&B Specialties, which manufactures track-switching products. The companies reached a sale agreement in February.

"The purchase of G&B will approximately double Global's revenues and profitability," said Global Railway President Mike Kohut in a prepared statement.

Contact Progressive Railroading editorial staff.

More News from 3/27/2003