BOCA RATON, Fla. — RailAmerica, Inc., the world’s largest operator of short line and regional freight railroads, announced on December 28 that it has completed two asset sale transactions totaling $2.2 million. The proceeds from these transactions will be used to reduce the Company’s long-term debt and for general working capital purposes.
In the first transaction, RailAmerica Equipment Corporation, a subsidiary of RailAmerica, has sold its fleet of railroad tank cars to The CIT Group/Equipment Financing, Inc., a subsidiary of Tyco Capital, for $1.7 million. In the second transaction, the Company sold a 12-mile portion of its Toledo, Peoria & Western Railroad located between LaHarpe and Lomax, Illinois to Keokuk Junction Railway Company, Inc. for $0.5 million.
RailAmerica, Inc., the world’s largest short line and regional railroad operator, currently owns 39 short line and regional railroads operating approximately 11,000 route miles in the United States, Canada, Australia and Chile. In North America, the Company’s railroads operate in 22 states and six Canadian provinces. Internationally, the Company operates an additional 4,300 route miles under track access arrangements in Australia and Argentina. In October 2001, RailAmerica was ranked 85th on Forbes magazine’s list of the 200 Best Small Companies in America; in July 2001, the Company was named to the Russell 2000® Index.