The FTAI infrastructure has agreed to acquire the Wheeling Corporation, which owns the train company Wheeling & Lake Erie (W & Le), for $ 1.05 billion in cash.
The Willing Corporation is bought by an entity controlled by Larry Parsons, who is CEO of the Willing Corporation.
W & LE works as a regional class II, serving over 250 customers after more than 1,000 miles in Ohio, Pennsylvania, West Virginia and Maryland.
It connects to Transtar’s railway outside Pittsburgh, Pennsylvania.
At the same time, by finalizing the acquisition, FTAI intends to refinance the existing 10.50% high notes and the assembly of Serie A shares.
FTAI has provided $ 2.25 billion in total capital, which includes $ 1.25 billion in a new debt and $ 1 billion in shares of the Ares management funds and issued through a newly founded Holding Company that will own Transtar and W & LE.
FTA’s chief executive, Ken Nicholson, said: “Growing up our trailing railway platform is a key focus on FTAI and we are thrilled to have this opportunity to combine with W & LE.
“We believe that W & LE is a great candidate for combination with TranStar, adding scale, diversification and network range.
“Together, Transstar and W & LE have identified several opportunities for growth and operating efficiency that we expect to cause significant revenue growth and EBITDA.”
The transaction is expected to close in confidence in voting under the rules set by the US Surface Transport Board, in the third quarter of this year, in anticipation of fulfilling standard closing conditions.
FTAI expects to take control of W & LE as soon as the STB approval is approved, making W & LE an accompanying Transstar company.
Barclays and Deutsche Bank have offered Debt and Financial Advisory Services, while Sidley Austin and Scaden, Arps, Slate, Meger and Flom have served as the company’s legal advisers.
Kalphi, Halter and Griswald and Fletcher and Sipel provided the W & LE legal advice.
“FTAI infrastructure to buy Wheeling & Lake Erie for $ 1.05 billion” was originally created and published by Railway technologybrand owned by Globaldata.
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