RailAmerica to get new credit facility with bond tender offer

By Sara Rosenberg

New York, Feb. 1 - RailAmerica Inc. plans on getting a new credit facility in connection with its tender offer for $444 million of 9¼% senior secured notes, according to a market source.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

Details on the credit facility are not yet available, the source said.

The bond tender offer is scheduled to expire on Feb. 29 and is subject to completion of the credit facility.

In addition, on Wednesday, the company said that it will use borrowings under its revolver, along with cash on hand, to fund the $18 million acquisition of a 70% interest in the Wellsboro and Corning Railroad and Industrial Waste Group from Myles Group, as well as the $40 million purchase of Marquette Rail LLC.

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

© 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.