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S&P: RailAmerica loan BB+
Standard & Poor's said it assigned a BB+ rating to RailAmerica Inc.'s proposed new seven-year, $585 million term loan B.
The agency also said it assigned a 1 recovery rating to the term loan, indicating 90% to 100% expected recovery in a default.
The proceeds will be used to retire existing debt, including up to $444 million of senior notes, S&P said.
The ratings reflect the company's aggressive financial risk profile, capital intensity and strategy of growth through acquisitions, the agency said.
The company's position as the largest short-line railroad company in the United States and its participation in the relatively stable North American freight railroad industry support the ratings, S&P said.
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