RailAmerica replaces $40 million facility with $75 million revolver

By Toni Weeks

San Diego, Aug. 30 - RailAmerica, Inc. said it has entered into a new $75 million revolving credit facility with a lending group that includes Citibank, NA, the lending affiliate of Morgan Stanley Senior Funding, Inc. and BMO Harris Bank.

The new facility matures in August 2016 and replaces RailAmerica's existing $40 million asset-backed loan facility.

"Our existing cash balance combined with a new revolving credit facility gives us significant liquidity and financial flexibility to support our growth strategies," president and chief executive officer John Giles said in a press release.

The company also announced that its board of directors has authorized the repurchase of up to $25 million of stock from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchase will depend on factors such as price, availability of the company's shares, trading volume and general market conditions.

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

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