S&P: RailAmerica unaffected

RailAmerica Inc. (BB-/stable/--) announced it has completed the sale of its Australian operations and received $204 million in proceeds. Standard & Poor's said the completion of the sale has no immediate impact on its rating or outlook on the rail company.

RailAmerica plans to use the proceeds to repay debt, including $60 million of senior debt. The company also stated that it has commenced an offer to purchase for cash all of its outstanding $130 million principal amount of 12 7/8% senior subordinated notes due Aug. 15, 2010.

S&P said the outlook could be revised to positive if it appears that the company will maintain a less leveraged capital structure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.