Acquisition of RailAmerica complete
October 8, 2012 / Updated October 26, 2012
Short Line Railroads
From news releases
Genesee & Wyoming Inc. announced earlier this month that it has completed the acquisition of RailAmerica, Inc. 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.
Among railroads that RailAmerica operates is the Dallas, Garland & Northeastern, KYLE Railroad, Texas Northeastern Railroad, Missouri & Northern Arkansas and Kiamichi Railroad.
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.
GWI financed the $1.37 billion cash purchase price for RailAmerica’s shares, the refinancing of $1.23 billion of GWI and RailAmerica’s total outstanding debt prior to the acquisition, as well as transaction and financing related expenses with approximately $1.85 billion of debt from its new five-year Senior Secured Credit Facility, approximately $460 million of cash from its recent public offerings of common stock and tangible equity units and $350 million through a private issuance of mandatorily convertible preferred stock to The Carlyle Group.
Keith Brewer’s HO Wichita Falls Division, Fort Worth & Denver Rwy. is not just the culmination of years of research of his hometown railroad but the backstory after he took up model railroading. It wasn’t until several years after leaving Bowie, TX, that he understood the importance of the FW&D beyond its everyday whistles. Today Brewer's point-to-point 14x20 layout, a scaled down version of a much larger pike in another home, pays homage to the freight business. Short main line trains haul cattle, grain, gravel and agricultural products along the route from Fort Worth, Decatur, Bowie, Henrietta and Wichita Falls, TX. The action is heavy but eases when the crew breaks midway through an operating session. A tasty cobbler, cake or banana pudding is just the right recipe for fun.
With a variety of options, N-scale modular model railroading is enjoying growth.This summer in Chattanooga, TN, NRail, which embraces all forms of N scale, will head the hobby’s quest to build the world’s largest modular layout at the NMRA National Convention. It’s all but assured that the previous record will fall to a connected layout that will occupy 10,000 square feet of the city’s convention center.
A fierce winter storm brought out model railroad and rail enthusiasts by the thousands for the opening day of January's annual Railroad Hobby Show in Springfield, MA. A single-day record of 18,432 filled the aisles at the Eastern States Exposition before some 18 inches of snow blanketed New England. U-series General Electric locomotives topped new product announcements.
Coordinated run-throughs that connect two or more Class I railroads is a proven solution for moving freight from coast to coast; one of Micro-Trains last N-scale releases, the Greenville Railgon is worth its weight in hauling heavy loads; the elegance and food of the dining car experience spoiled hungry riders during the heyday of passenger rail transportation; Union Pacific inks a record deal to upgrade its locomotives. And more!
