Greenwich — Genesee & Wyoming Railroad said last week that it had completed is purchase of RailAmerica on Oct. l. However, control of RailAmerica was placed in a trust with a trustee. The Greenwich, Conn.-based freight train hauler said the trust was to remain in effect until the U.S. Surface Transportation Board issues its decision on the Genesse application, which may not be made by the federal agency until the first quarter of next year.
It was on July 23 of this year when Genesse announced plans to purchase RailAmerica for $1.39 billion to combine North America’s two largest regional railroad operators. The firm said it planned to finance its purchase by refinancing its existing debt of $2 billion to a new debt and $800 million in equity on equity limited securities.
The company said railroad traffic operations last month for all its railroad operations in the U.S. and several countries resulted in freight trains carrying 80,241 carloads which is a decrease of 4,090 car loads this time last year, or a drop of 4.8 percent.