RailAmerica tenders for up to $444 million of 9¼% secured notes

By Jennifer Chiou

New York, Feb. 1 - RailAmerica, Inc. announced the start of its cash tender offer for up to $444 million of its $518 million of outstanding 9¼% senior secured notes due 2017.

For each $1,000 principal amount, the company will pay $1,120, including a $30.00 early tender payment for those who tender prior to 5 p.m. ET on Feb. 14.

RailAmerica will also pay accrued interest.

The offer is set to end at midnight ET on Feb. 29, and settlement is anticipated for March 1.

The company added that it expects to call up to $74 million of the notes, which represents 10% of the $740 million original issue amount. It intends to pay a redemption price of 103 plus accrued interest.

Citigroup is the dealer manager (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the depositary and the information agent (866 794-2200 or call collect 212 430-3774).

Jacksonville, Fla.-based RailAmerica owns and operates short line and regional freight railroads in North America. It announced plans for the redemption on Dec. 7.

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