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SANTA FE COMPLETES CALIFORNIA LINE SALE TO TRANSIT AGENCIES

 SCHAUMBURG, Ill., Dec. 15 /PRNewswire/ -- Santa Fe Railway transferred certain interests in rail lines and other properties in southern California to various transit agencies today for approximately $250 million in cash, relief from certain obligations to reimburse state and county agencies for $30 million in connection with prior capital expenditures made on these lines, and the agreement of several transit agencies to pay for substantial capital improvements on Santa Fe's San Bernardino subdivision. Santa Fe expects to use the net proceeds to retire debt.
 By acquiring Santa Fe's rail lines, California commuters will soon be assured access to an efficient and environmentally sound commuter network,'' stated Robert D. Krebs, Santa Fe's chairman, president and chief executive officer.
 The transaction includes the purchase of rights on approximately 122 miles of Santa Fe rail lines, commuter easement over 62 miles and Santa Fe's interests in other related properties. The properties to be acquired by the agencies are intended to be used as the core of two commuter rail systems serving communities throughout southern California.
 Specifically included in the sale are the following lines:
 -- Pasadena Subdivision between San Bernardino and downtown Los
 Angeles, via Pasadena (58.6 miles),
 -- San Diego Subdivision in San Diego County, between San Clemente
 and downtown San Diego (63 miles), and
 -- Easement access to operate commuter trains on the San Bernardino
 subdivision between San Bernardino and Redondo Junction Tower
 near downtown Los Angeles (62 miles).
 Santa Fe will continue to provide rail freight services on all the rail lines involved in the transaction. Closings on the other properties that are part of the transaction announced on Nov. 2, 1992, are scheduled to take place through mid-1993 for an additional $250 million in cash and relief from obligations to reimburse state and county agencies for $16 million of prior capital expenditures.
 -0- 12/15/92
 /CONTACT: Catherine Westphal of Santa Fe, 708-995-6273/


CO: Santa Fe Railway ST: Illinois IN: TRN SU:

TM -- NY094 -- 7478 12/15/92 19:25 EST
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Publication:PR Newswire
Date:Dec 15, 1992
Words:330
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