Monday, June 22, 2009

RailAmerica places $740 million debt offering

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Jacksonville, Fla.-based RailAmerica, Inc., which oversees numerous short line and regional railroads, says it successfully sold $740 million of eight-year senior secured notes in the private-placement market last week. Proceeds from the bond sale will be used to refinance debt under RailAmerica’s existing credit facility.


The company said buyers included Citigroup, Deutsche Bank Securities, JP Morgan, Morgan Stanley, and Wachovia.

“RailAmerica was able to acquire permanent, long-term capital financing with attractive terms and great flexibility, a move that positions us to grow the company,” said RailAmerica President and Chief Executive Officer John Giles.

RailAmerica is owned by funds managed by affiliates of Fortress Investment Group.