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RailAmerica Inc. June 26 completed the private placement of $41 million in common stock through various investors, including John Hancock Advisers Inc., Putnam Investments, Capital Research and Management Co., Bank of America and U.S. Bancorp Piper Jaffray Asset Management.
The short-line holding company sold 3.8 million shares of its common stock at $10.75 per share — in part to reenter the short-line purchasing game.
"The additional capital enables us to finance rail acquisitions, de-lever our balance sheet and reduce debt," said Gary Marino, RailAmerica chaimran, president and chief executive officer, in a prepared statement. "It also allows us to get closer to achieving our year-end 2001 debt-to-equity ratio target of less than two-to-one."
The company, which last year owned as many as 50 railroads, now owns and operates 39 regionals and short lines in the United States, Canada, Chile and Australia. Under an asset rationalization plan, RailAmerica in mid-2000 placed acquisition efforts on hold and concentrated on selling short lines, real estate and rolling stock — amassing $126 million through the sales.