RailAmerica enters into new US$75M revolving credit facility; board also authorizes repurchase of up to US$25M of common stock
August 30, 2011
– RailAmerica, Inc. (NYSE:RA - News) today announced that it has entered into a new $75 million revolving credit facility. Separately, RailAmerica also announced that its board of directors has authorized the repurchase of up to $25 million of the Company's common stock.
The new revolving credit facility matures in August 2016 and replaces RailAmerica's existing $40 million Asset Backed Loan facility. The lending group on the new facility includes Citibank, N.A., the lending affiliate of Morgan Stanley Senior Funding, Inc. and BMO Harris Bank.
Under the stock repurchase program, the Company may purchase common stock from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchase will depend on a number of factors including the price and availability of the Company's shares, trading volume and general market conditions.
John Giles, RailAmerica's President and Chief Executive Officer, said, "Our existing cash balance combined with a new revolving credit facility gives us significant liquidity and financial flexibility to support our growth strategies. In addition, we announced a new share repurchase program as we see repurchasing our shares as an excellent investment, which complements our focus on building shareholder value through organic growth and acquisitions."
RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 43 individual railroads with approximately 7,400 miles of track in 27 U.S. states and three Canadian provinces.