(RailAmerica issued the following news release on February 2.)
BOCA RATON, Fla. — RailAmerica today announced that it has completed the sale of its 55% Chilean Railroad interest to Andres Pirazzoli y Cia., Ltda. In addition to the $10.75 million cash payment that was paid to the Company, RailAmerica received $7.4 million in secured instruments which will bear interest and be paid over a 6-1/2 year period.
“This transaction eliminated approximately $20 million in Ferronor debt from our balance sheet and will allow RailAmerica to redeploy the proceeds toward further debt reduction and other general corporate purposes,” said Gary O. Marino, Chairman, President and CEO of RailAmerica.
RailAmerica, Inc. (NYSE:RRA) is the world’s largest short line and regional railroad operator with 47 railroads operating approximately 16,400 miles in the United States, Canada, and Australia including track access arrangements. The Company is a member of the Russell 2000(R) Index. Its website may be found at http://www.railamerica.com.