UBS is holding a conference call today for RailAmerica's $450 million credit facility. The credit comprises a six-year, $100 million revolver at LIBOR plus 1 3/4% and a seven-year, $350 million term loan at LIBOR plus 2%, a market participant said. Senior leverage will run in the mid-three times area, the participant added.
Last month the company sold its Australian railroad, Freight Australia, to Pacific National for $204 million. The new credit, along with proceeds from the Freight Australia sale, are being used to tender for outstanding $130 million 12 7/8% senior subordinated notes due 2010. It will also refinance the existing credit facilities. RailAmerica is a short line and regional rail service provider. Company officials did not return calls and UBS bankers declined comment.
The previous credit facility was led by UBS and Morgan Stanley. Lenders include The Blackstone Group, Citigroup, Travelers Asset Management, HVB Credit Advisors, Denali Capital, American Money Management Corp., Wells Fargo Bank, Nationwide Life Insurance Co., Nationwide Mutual Insurance Co., Toronto Dominion, The Bank of Nova Scotia, Lyon Capital Management, RZB Finance, Franklin Templeton Investments, The Bank of Ireland, The Royal Bank of Canada, Katonah Capital, Sankaty Advisors, Allstate Life Insurance Co., National Bank of Canada, Credit Lyonnais, SunAmerica Life Insurance Co., CIBC, Natexis Banques Populaires, Nomura Asset Management, Fleet National Bank, Allied Irish Bank and Van Kampen Investments.