Wheeling & Lake Erie Railway to be sold to FTAI

FTAI Infrastructure Inc. (FIP) yesterday announced that it has agreed to purchase The Wheeling Corp., owner of the Wheeling & Lake Erie Railway Co. (W&LE), for $1.05 billion from an entity controlled by Wheeling Corp. CEO Larry Parsons.

A regional, the W&LE serves more than 250 customers along over 1,000 miles of track in Ohio, Pennsylvania, West Virginia and Maryland. The W&LE connects to Transtar Rail's Union Railroad Co. LLC outside of Pittsburgh.

Simultaneously with the closing of the acquisition, FIP plans to refinance its existing 10.50% senior notes and Series A preferred stock, according to a FIP press release. The company has received commitments for $2.25 billion of total capital including $1.25 billion of new debt to be issued by the company and $1 billion of preferred stock to be purchased by Ares Management funds and issued by a newly formed holding company that will own the combined Transtar and W&LE business.

If the transaction is approved by the Surface Transportation Board, the W&LE will become an affiliate of Transtar. FIP officials expect the transaction to close in third-quarter 2025.

"We believe the W&LE is an excellent candidate for a combination with Transtar, adding scale, diversification and network reach," said FIP CEO Ken Nicholson. Together, Transtar and the W&LE have identified several growth opportunities and operating efficiencies that FIP officials expect to drive substantial growth, he added.

Parsons has been the driving force behind the rebirth of the W&LE, according to FIP officials. Taking the helm in 1992, he guided the railroad through a period of extraordinary change, transforming a coal-dependent line into a modern, customer-focused regional railroad, they said.