RailAmerica to repay debt with proceeds from Australian railroad sale

By Sara Rosenberg

New York, Aug. 31 - RailAmerica Inc. plans to repay $60 million of senior debt using a portion of the proceeds from the completed sale of its Australian railroad to Pacific National for $204 million, according to a company news release.

Remaining proceeds from the asset sale will be used to repay other long-term debt.

"With the sale of Freight Australia now complete, we can concentrate on operating and growing our North American rail business. The proceeds from the sale will be used to pay down long-term debt, thus strengthening our balance sheet, significantly reducing our interest expense, and reaching our goal of a net debt-to-capital ratio of 50%," said Charlie Swinburn, chief executive officer, in the release.

RailAmerica is a Boca Raton, Fla., short line and regional rail service provider.

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