Additional details disclosed on Genesee & Wyoming buyout

01 July 2019 - 12:00 am UTC

The Brookfield Infrastructure’s led USD 8.677bn buyout of global short haul railroad operator Genesee & Wyoming (G&W) is being funded by multiple partners, according to a regulatory filing.

 

Brookfield Infrastructure Fund IV and three of its affiliates are funding USD 4.027bn of the deal in equity while GIC is funding USD 1.5bn. In a separate filing, Brookfield indicated its investment would be USD 500m of equity, implying the lion’s share of the equity was coming from its partners. Among the largest LP committments to Fund IV are Oregon Investment Council (USD 400m) and Teachers Retirement System of Texas (USD 300m), according to Inframation Deals.

 

Credit Suisse, Wells Fargo, Citi and RBC Capital Markets have agreed to provide USD 2.55bn in senior secured term loans and a USD 600m revolver.

 

G&W carried net debt of USD 2.3bn and total leverage of 2.8x based off TTM EBITDA ended 31 March, excluding its Australian operations, according to a company presentation. This amounts to USD 838m in EBITDA, excluding its Australian operations.

 

Its existing capital structure comprised a USD 1.737bn senior credit facility due 2023 and USD 457m Australian credit facility that comes due in 2021.

 

G&W’s Australian operations were jointly owned by G&W and Macquarie Infrastructure Real Assets (MIRA). The Australian debt is non-recourse to that JV.

 

G&W operates roughly 140,000 km (86,991 miles) of short haul rail in the US – the majority of which is Class I railroads. The rest of its rail operations are spread amongst Canada, Australia, United Kingdom, Germany, Netherlands and Poland. G&W also operates off-dock containers terminals at three major seaports in the UK following its acquisition of Pentalver Transport in 2017.

 

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