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.

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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.