Freight Australia Update
March 2004 – Executed share sale agreement
- $285 million AUD ($200 US at 7-29-04)
Anticipated closing in Q3 2004
Received ACCC (Australian Competition and Consumer Commission) approval on July 2, 2004
Subject to State of Victoria approval prior to closing
- State has raised a number of issues which RailAmerica and Pacific National are seeking to resolve
Use of Proceeds from Sale
- Pay off $57.0 M term debt and $3.1 M revolver (2004 estimated annual interest expense of $2.6 M)
- Considering paying off all or substantially all of the bonds (annual interest expense of $18.5 M), subject to consent of senior lenders