RailAmerica cashes out Chilean rail investment

RailAmerica cashes out Chilean rail investment    Rail America, a holding company for 49 short-line railroads in several countries, said it was selling its interest in Chilean railroad Ferronor to reduce debt associated with its North American railroad acquisitions.
   The Boca Raton, Fla.-based railroad operator said it reached agreement with its Chilean partner Andres Pirazzoli y Cia. to sell its 55-percent interest in the railroad for $18.1 million, $10.7 million of which will be paid in cash and the rest as installments with interest.
   RailAmerica, which purchased a stake in Ferronor for $6.8 million, said the decision was made to cash out gains from the railroad and use the proceeds to reduce debt on its core North American rail business. The sale also allows the company to eliminate about $20 million of Ferronor debt from its balance sheet.
   In November, RailAmerica announced plans to acquire the Central Michigan Railway Co., which operates 100 miles of track between Midland and Duran, Mich. The company created a new subsidiary, the San Luis & Rio Grande Railroad company, after its June acquisition of a branch line in Colorado from the Union Pacific Railroad. Another transaction in June involved the acquisition of 288 miles of track from Burlington Northern Santa Fe for RailAmerica’s Alabama & Gulf Coast Railway.
   RailAmerica operates railroads in the United States, Canada, Australia and Argentina.