Friday, December 21, 2012

STB approves GWI, RailAmerica transaction

Written by  William C. Vantuono, Editor-in-Chief
The Surface Transportation Board (STB) has approved Genesee & Wyoming Inc.’s application to control RailAmerica, Inc., and the RailAmerica railroads, effective Dec. 28, 2012.

Assuming no stay requests are made by the Dec. 24, 2012, deadline set by the STB, the voting trust that has controlled RailAmerica since the transaction closed on Oct. 1, 2012, is expected to be dissolved on Dec. 28, 2012. Thereafter, GWI would assume control of RailAmerica and begin integration of the two companies.

GWI said Oct. 1 it had completed its acquisition of RailAmerica, Inc., and also "entered into a new five-year Senior Secured Credit Facility comprised of a $1.875 billion term loan and $425 million revolving credit facility."