RailAmerica sets Thursday meeting for $585 million term loan

By Sara Rosenberg

New York, Feb. 15 - RailAmerica Inc. is scheduled to hold a bank meeting at 10:30 a.m. ET on Thursday to launch a proposed $585 million senior secured term loan, according to a market source.

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

Proceeds will be used to help fund the company's tender offer for up to $444 million of its 9¼% senior secured notes.

The company has received early tenders for about $513 million of the $518 million notes outstanding and will accept the tendered notes on a pro rata basis.

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

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

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