RailAmerica amends asset-backed credit facility to remove Libor floor

By Sara Rosenberg

New York, June 15 - RailAmerica Inc. amended its asset-backed credit facility, eliminating the 2.5% Libor floor, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

In addition, the amendment modified the borrowing base calculation and reporting requirements to require less frequent financial reporting in certain circumstances.

Also, the limitations on permitted acquisitions and restricted payments were adjusted, and financial covenants were changed to incorporate cash balances in some definitions.

The amendment was completed on June 10.

Citicorp is the administrative agent on the deal.

RailAmerica is a Jacksonville, Fla.-based owner and operator of short line and regional freight railroads.

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