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RAIL EMPLOYMENT



Rail News Home Short Lines & Regionals

10/2/2012



Rail News: Short Lines & Regionals

Genesee & Wyoming completes RailAmerica acquisition, places control of holding company in voting trust


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Yesterday, Genesee & Wyoming Inc. (GWI) announced it completed the RailAmerica Inc. acquisition and entered into a new five-year credit facility comprising a $1.87 billion term loan and $425 million in revolving credit.

After the deal closed, control of RailAmerica was placed into a voting trust, which will remain in effect until the Surface Transportation Board (STB) issues a final decision on GWI's application to control the short-line holding company, GWI officials said in a prepared statement. The board could render a decision sometime in the fourth quarter or in first-quarter 2013, they said.

GWI financed the $1.37 billion cash purchase price for RailAmerica's shares, the refinancing of $1.23 billion of GWI's and RailAmerica's total outstanding debt prior to the acquisition, and transaction- and financing-related expenses with about $1.85 billion of debt from the new five-year credit facility, $460 million in cash from recent public offerings of common stock and tangible equity units, and $350 million through a private issuance of preferred stock to The Carlyle Group.

In July, GWI announced it reached an agreement to acquire RailAmerica for $27.50 per share in cash. The purchase of RailAmerica's 45 regionals and short lines in the United States and Canada boosts GWI's railroad holdings to 108 in North America and 111 worldwide.


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