(RailAmerica issued the following news release on December 8.)
BOCA RATON, Fla. — RailAmerica (NYSE:RRA) today announced that it has completed the sale of its Arizona Eastern Railway Company and West Texas and Lubbock Railroad Company, Inc. subsidiaries to Permian Basin Railways, Inc. Permian Basin Railways, Inc. has been the operator and lessee of the West Texas and Lubbock Railroad since May 2002. RailAmerica received cash proceeds of $2.75 million for the sale of its shares of the Arizona Eastern Railway Company, and cash proceeds of $1.75 million and a note in the amount of $3.55 million for the sale of its shares in the West Texas and Lubbock Railroad Company.
Arizona Eastern Railway Company owns and operates 135 track miles between Miami, Arizona and Bowie, Arizona. West Texas and Lubbock Railroad Company owns and operates 104 track miles between Seagraves and Lubbock, Texas and from Lubbock to Whiteface, Texas.
“We are very pleased that Arizona Eastern’s quality people and fine railroad are now part of the Permian Basin family,” said Ed Ellis, President of Iowa Pacific Holdings. “RailAmerica has certainly been good to work with as our previous transactions with them have benefited all stakeholders and we expect nothing less with Arizona Eastern and West Texas and Lubbock.”
The financial results of the Arizona Eastern Railway Company have been reported in Discontinued Operations during 2004.
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 44 railroads operating approximately 8,900 miles in the United States and Canada. The Company is a member of the Russell 2000(R) Index. Its website may be found at http://www.railamerica.com.