Genesee & Wyoming Completes Acquisition of Ohio Central Railroad System

GREENWICH, Conn. — Genesee & Wyoming Inc. has completed its acquisition of 10 short line railroads known as the Ohio Central Railroad System (OCR) for $234.3 million in cash, subject to adjustment for final working capital.

The cash purchase price includes $7.5 million of contingent consideration that GWI has placed into escrow, which will be paid to the seller upon satisfaction of certain conditions.

OCR has more than 170 employees, operates over 445 miles of track and owns 64 locomotives. The railroads handle approximately 140,000 annual carloads, primarily in the coal, steel and solid waste industries.

GWI financed the cash purchase price for OCR by amending and expanding the size of its senior credit facility from $256 million to $570 million. The amended credit facility closed concurrent with the completion of the OCR acquisition.

The amended credit facility is comprised of a US$300 million revolving loan, a US$240 million term loan and a Canadian dollar equivalent of a US$30 million Canadian term loan, all of which are due in 2013. Initial borrowings are priced at LIBOR plus 2 percent. Bank of America acted as sole lead arranger and administrative agent for the previous credit facility and played the same role in the amended credit facility.

Following the acquisitions of OCR and Georgia Southwestern Railroad, which Genesee & Wyoming also purchased, GWI has approximately $200 million of available borrowing capacity under the amended credit facility, which is available for general corporate purposes, including acquisitions.

— PRNewswire-FirstCall