p"> p" />

1370 Ontario St. - Mezzanine, Cleveland, Ohio 44113 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Secretary-Treasurers
Information
Merchandise
Communications
FELA
Events
Links
User Info

Genesee & Wyoming completes acquisition of RailAmerica

(Source: Genesee & Wyoming press release, October 1, 2012)

GREENWICH, Conn. — Genesee & Wyoming Inc. (GWI) announced today that it has completed the acquisition of RailAmerica, Inc. (RailAmerica) and entered into a new five-year Senior Secured Credit Facility comprised of a $1.875 billion term loan and $425 million revolving credit facility.

Immediately following the closing of the acquisition, control of RailAmerica was placed into a voting trust with R. Lawrence McCaffrey appointed as trustee. The trust will remain in effect until the U.S. Surface Transportation Board (STB) issues its decision on GWI’s application to control RailAmerica and its railroads, which decision could be as early as the fourth quarter of 2012 or as late as the first quarter of 2013. During the period that RailAmerica is held in trust, GWI will account for its ownership under the equity method of accounting. Expected cost savings from the business combination will not be realized until the STB approves GWI’s control of RailAmerica’s railroads.

GWI financed the $1.37 billion cash purchase price for RailAmerica’s shares, the refinancing of $1.23 billion of GWI and RailAmerica’s total outstanding debt prior to the acquisition, as well as transaction and financing related expenses with approximately $1.85 billion of debt from its new five-year Senior Secured Credit Facility, approximately $460 million of cash from its recent public offerings of common stock and tangible equity units and $350 million through a private issuance of mandatorily convertible preferred stock to The Carlyle Group.

About GWI

GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, GWI operates the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 66 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 23 ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

Tuesday, October 02, 2012

Like us on Facebook at
Facebook.com/BLETNational

© 1997-2015 Brotherhood of Locomotive Engineers and Trainmen

 


Safety Task Force Hotline
800-306-5414

Decertification Helpline
800-393-2716

DAILY HEADLINES

Teamster Nation: Get the latest updates in the War on Workers
House passes $8 billion Amtrak funding bill
PRRIA passes U.S. House; Amtrak-killing amendment squashed
House passage of Amtrak bill could be a boost to Northeast Corridor service
Hunter Harrison says CP Rail will use management to maintain 100 percent capacity in event of another strike
Alabama scores U.S. Supreme Court win in tax fight with CSX
Teamsters and labor allies urge Congress to oppose Fast Track
CSX softens outlook for crude by rail shipments amid price slump
Canadian Pacific wants to limit shipments of dangerous goods
Schumer joins call for stabilizing crude oil trains
Cost to modernize MBTA more than doubles in six years
China to invest $128 billion in rail, push for global share
Vancouver container fire shuts down port, some rail service
Dogs and cats to be allowed on board passenger trains under Amtrak measure
Railroad Retirement Survivor Benefits

More Headlines


Enter your e-mail address to receive BLET news updates.

Subscribe  Unsubscribe