RailAmerica's $450 million credit facility priced ahead of Monday launch

By Sara Rosenberg

New York, Sept. 9 - RailAmerica Inc.'s proposed $450 million credit facility priced ahead of the launch with the $100 million six-year revolving credit facility priced at Libor plus 175 basis points and the $350 million seven-year term loan priced at Libor plus 200 basis points, according to a market source.

The deal is scheduled to launch via a conference call Monday afternoon, not Friday as was previously reported by Prospect News.

UBS is the sole bookrunner on the deal.

Proceeds from the credit facility, combined with proceeds from the previously announced sale of RailAmerica's Australian railroad to Pacific National for $204 million, will be used to tender for existing senior subordinated notes and refinance the existing credit facilities.

Leverage will run in the mid 3x area and will consist of all senior debt, the source added.

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

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