MIDSOUTH COMPLETES ACQUISITION OF NEW RAILROAD
MIDSOUTH COMPLETES ACQUISITION OF NEW RAILROAD JACKSON, Miss., Jan. 7 /PRNewswire/ -- MidSouth Corporation
(NASDAQ: MSRR) announced today that its wholly owned subsidiary, TennRail, has completed the purchase of the operating assets of the Corinth and Counce Railroad Company, a subsidiary of Packaging Corporation of America.
The $32 million purchase price was financed through a combination of debt and equity. MidSouth Corporation sold 1,040,000 shares of its common stock in a private placement completed on Dec. 31, 1991. Northwestern Mutual Life Insurance Company purchased 832,000 shares and Archer Daniels Midland Company acquired 208,000 shares. The share price for both sales was $8.50. The entire proceeds of the equity placement were used in the transaction. The remainder of the purchase price was provided through the placement of senior-secured debt with the Bank of Boston and Deposit Guaranty National Bank and subordinated debt with Packaging Corporation of America. "Growth through synergistic acquisitions has been a central feature of MidSouth's strategic plan since its creation in 1986," MidSouth Chairman Mark M. Levin explained. "With TennRail, MidSouth gains exclusive rail access to a fourth major paper plant, which is the flagship unit of Packaging Corporation of America." "We are also pleased that Northwestern Mutual, one of our senior noteholders, has made a sizeable equity investment in the corporation and that ADM, our largest shareholder, has increased its stake," Levin concluded. -0- 1/7/92 /CONTACT: John A. Scotto of MidSouth, 601-949-4366/ (MSRR) CO: MidSouth Corporation ST: Mississippi IN: TRN SU: TNM PS -- NY004 -- 7173 01/07/92 08:31 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 7, 1992|
|Previous Article:||COMPAQ PORTABLE 486C COLOR TRANSPORTABLE PC EXCEEDS SALES EXPECTATIONS, PIONEERS NEW MARKET|
|Next Article:||COLUMBIA CLOSES ST. FRANCIS HOSPITAL TRANSACTION; CONTINUES TO BUILD SOUTH FLORIDA HEALTHCARE SYSTEM|