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RailAmerica seeks $650 million credit facility
By Sara Rosenberg
New York, Feb. 27 - RailAmerica Inc. is in-market with a $650 million 18-month senior secured credit facility that will be used to back its already completed leveraged buyout by Fortress Investment Group LLC, according to a market source.
Citigroup and Morgan Stanley are the lead banks on the deal.
The facility, which was launched via Intralinks on Friday, consists of a $25 million revolver and a $625 million term loan B, with both tranches talked at Libor plus 225 basis points, the source said.
There is a co-borrower structure, so $20 million of the revolver will be at a U.S. borrower and $5 million will be at a Canadian borrower, and $587 million of the term loan B will be at a U.S. borrower and $38 million will be at a Canadian borrower, the source explained.
RailAmerica is a Boca Raton, Fla., short-line and regional rail service provider.
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