p"> p" />

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

News and Issues
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

Sign up for BLET News Flash Alerts

© 1997-2015 Brotherhood of Locomotive Engineers and Trainmen


Decertification Helpline
(216) 694-0240

National Negotiations

Sign up for BLET
News Flash Alerts


Teamster Nation: Get the latest updates in the War on Workers
U.S. judge approves $446 million settlement for victims of Lac-Megantic disaster
Lac-Megantic residents march for better rail safety
NJ Transit biggest loser in Amtrak cost-sharing plan
Metrolink approves $24 million plan to lease locomotives
FRA updates track inspection standards after oil train derailment
Drones used during response to Amtrak’s Vermonter derailment
CSX lobbies to have oil train derailment lawsuits thrown out of court
Norfolk Southern: Key South Carolina rail line will be down 2-3 weeks due to flooding
Amtrak halts Chicago-St. Louis service for bridge repairs
Unsolved Arizona mystery: Who derailed the Sunset Limited in 1995?
RRB News: Disability annuities for railroad employees

More Headlines