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Today, RailAmerica Inc. announced it completed a transaction to acquire four short lines from Alcoa Inc. for $77.5 million cash. The short-line holding company funded most of the purchase by increasing the term loan portion of a senior secured credit facility by $75 million.

RailAmerica now owns the 13-mile Point Comfort & Northern Railway Co., which serves Alcoa’s bauxite, alumina and chemical facility in Point Comfort, Texas; the six-mile Rockdale, Sandow & Southern Railroad Co., which serves the manufacturer’s aluminum manufacturing plant in Rockdale, Texas; the three-mile Massena Terminal Railroad Co., which serves Alcoa’s aluminum manufacturing facility in Massena, Texas; and the three-mile Bauxite & Northern Railway Co., which serves a specialty chemicals plant in Bauxite, Ark.

During a 12-month period ending June 30, the four short lines handled 30,000 carloads, generated revenue of $20.8 million and earned operating income of $10.1 million.

"In addition to a well-maintained asset base and excellent customers, the railroads have a history of strong cash-flow generation," said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement.

RailAmerica owns and operates 47 regionals and short lines in the United States and Canada.