Genesee & Wyoming Inc. (GWI) GWR 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.
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