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RailAmerica buys $126 million 12 7/8% notes in tender
New York, Sept. 30 - RailAmerica Inc. said it bought $126 million of its outstanding $130 million 12 7/8% senior subordinated notes due 2010 in its tender offer for the securities.
The Boca Raton, Fla., railroad operator used proceeds from the sale of its Australian railroad Freight Australia and $10 million of borrowings on its new revolving credit facility to fund the tender and make the consent payments.
The tender offer expired at 5 p.m. ET on Sept. 29.
On Sept. 15 RailAmerica said it had received the necessary noteholder consents to amend the indenture for the 12 7/8% notes.
As previously announced, RailAmerica said on Aug. 31 that it had a cash tender offer for all the $130 million principal amount of the 12 7/8% notes, which had been issued in August 2000 by the company's RailAmerica Transportation Corp. subsidiary, and was also soliciting consents to amend the notes' indenture.
The company said that it would pay total consideration of $1,152.46 per $1,000 principal amount of notes tendered and accepted for payment by the company to those holders who tendered their notes by the consent deadline, which includes a $20 per $1,000 principal amount consent payment. Holders tendering after the deadline but before the expiration would receive tender offer considerations of $1,132.46 per $1,000 principal amount. RailAmerica will also pay accrued interest on all tendered notes.
RailAmerica said the tender offer would be conditioned upon, among other things, the receipt by the company of waivers and amendments to its senior credit facility; the tender of a majority of the notes with consents; and the receipt of sufficient proceeds from borrowings under the company's credit facility to purchase the notes.
UBS Securities LLC is dealer manager and solicitation agent (contact Liability Management Group at 203 719-4210 (collect) or 888 722-9555 x4210). The information agent is D.F. King & Co. Inc. (212 269-5500 (collect) or 800 269-6427).
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