UBS is in the market with a $75 million add-on term loan facility for RailAmerica. Pricing remained the same at LIBOR plus 2 1/4%. Commitments were due last Thursday and the deal is expected to close at the end of of this week. Based in Boca Raton, Fla., RailAmerica is a short line and regional rail service provider with 43 railroads operating 8,850 miles in the U.S. and Canada.
The loan will be used for the $77.5 million acquisition of four short line railroads from Alcoa that serve Alcoa's aluminum manufacturing operations in Texas and New York and a former specialty chemicals facility in Arkansas. Company officials could not be reached for comment by press time Thursday.