Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that it has
completed its acquisition of 10 short line railroads known as the Ohio
Central Railroad System (OCR) for $234.3 million in cash, subject to
adjustment for final working capital. The cash purchase price includes
$7.5 million of contingent consideration that GWI has placed into
escrow, which will be paid to the seller upon satisfaction of certain
conditions.
OCR has more than 170 employees, operates over 445 miles of track and
owns 64 locomotives. The railroads handle approximately 140,000 annual
carloads, primarily in the coal, steel and solid waste industries.
GWI financed the cash purchase price for OCR by amending and expanding
the size of its senior credit facility from $256 million to $570
million. The amended credit facility closed concurrent with the
completion of the OCR acquisition. The amended credit facility is
comprised of a US$300 million revolving loan, a US$240 million term loan
and a Canadian dollar equivalent of a US$30 million Canadian term loan,
all of which are due in 2013. Initial borrowings are priced at LIBOR
plus 2.0%. Bank of America, N.A. acted as sole lead arranger and
administrative agent for the previous credit facility and played the
same role in the amended credit facility.
Following the acquisitions of OCR and Georgia Southwestern Railroad,
also announced today, GWI has approximately $200 million of available
borrowing capacity under the amended credit facility, which is available
for general corporate purposes, including acquisitions.
GWI owns and operates short line and regional freight railroads in the
United States, Canada, Australia and the Netherlands and owns a minority
interest in a railroad in Bolivia. Operations currently include 63
railroads organized in nine regions, with more than 6,700 miles of owned
and leased track and approximately 3,000 additional miles under track
access arrangements. GWI provides rail service at 16 ports in North
America and Europe and performs contract coal loading and railcar
switching for industrial customers.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Genesee &
Wyoming's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.
Genesee & Wyoming Inc.
Michael E. Williams, 1-203-629-3722
Director, Corporate Communications
http://www.gwrr.com