RailAmerica, Inc. (Nasdaq NNM:RAIL - news) today
announced that it has completed a private offering of approximately $11.7 million of its Series A Convertible Redeemable
Preferred Stock. Pursuant to the offering, the Company sold 468,000 shares of its Preferred Stock at a price of $25 per share
to accredited investors. The Preferred Stock pays annual dividends of 7.5%, is convertible into shares of the Company's
common stock at a price of $8.25 per share, subject to adjustment, and is non-voting. The Preferred Stock has not been
registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an
applicable exemption from such registration.
Aggregate proceeds to the Company, less commissions and other fees paid to First London Securities Corporation of Dallas,
Texas, which acted as placement agent for the offering, were approximately $10.8 million. The Company plans to use the
proceeds from the offering for acquisitions of additional rail lines, capital expenditures, debt reduction and for other general
corporate purposes.
In commenting on the transaction, Gary O. Marino, RailAmerica's Chairman, President and C.E.O., said, ''The proceeds
received from this preferred stock offering will provide the equity needed to assist in our aggressive acquisition program. We
will continue to seek strategic acquisitions, both domestically and abroad, that we believe will both enhance and complement
our core operations. In addition, this offering strengthens our balance sheet and provides the capital needed to foster internal
growth at our existing subsidiaries.'' |
