Genesee & Wyoming Inc. said it had completed the acquisition of RailAmerica this week 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.
After the acquisition was closed on Monday, G&W said control of
RailAmerica was placed into a voting trust that will remain in effect until the U.S.
Surface Transportation Board issues its decision on G&W's
application to control RailAmerica and its railroads. G&W estimated that decision could come as early as the fourth quarter of 2012 or as late as the first
quarter of 2013.
G&W owns and operates short line and regional freight railroads and
provides railcar switching services in the United States, Australia,
Canada, the Netherlands and Belgium. Operations
currently include 66 railroads organized in 10 regions, with more than
7,600 miles of owned and leased track and about 1,400 additional
miles under track access arrangements.
RailAmerica owns and operates short line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with about 7,500 miles of track in 28 U.S. states and three Canadian provinces.
G&W also announced it has appointed Richard H. Bott and Gregory S. Ledford to its board of directors.
Bott is an investment banker who has worked at Morgan Stanley and Credit Suisse, while Ledford is a managing director and head of the industrial
and transportation team of The Carlyle Group. - Chris Dupin