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 LAKE RIDGE, Va., Feb. 8 /PRNewswire/ -- RailAmerica, Inc. (NASDAQ: RAIL) announced the use of an aggregate amount of approximately $1,800,000 of the net proceeds from its initial public offering for the repayment of a significant portion of its total indebtedness. The payment included the reduction of approximately $1.0 million in high interest rate institutional term debt, the retirement of short term bank financing and the payment of other current liabilities. Also included was the retirement of all private investor Subordinated Notes (Bridge Notes) totaling $212,500 plus accrued interest. The company anticipates the payment of the balance of its institutional debt prior to the end of the first quarter. The retirement of this debt allows the company to be well-positioned for the acquisition of new properties in accordance with its previously stated expansion plans. The company is presently evaluating a number of opportunities for new railroad acquisitions.
 In November 1992 RailAmerica completed its initial public offering of 550,000 units, priced at $7.00 per unit. Each unit consists of two shares of common stock, $.001 par value, one callable Class A warrant and one callable Class B warrant. Net proceeds to RailAmerica from the offering totaled $3,062,600. On Jan. 5, 1993 the company received an additional $163,700 from the exercise of a portion of the underwriter's over-allotment option.
 RailAmerica, Inc., is a publicly held transportation holding company which operates and develops short-line and regional railroads. Through its subsidiaries, the company operates 190 miles of rail line in Michigan's "Thumb" region, located approximately 100 miles north of Detroit.
 -0- 2/8/93
 /CONTACT: Donald D. Redfearn of RailAmerica, Inc., 407-394-3066; or Barry A. Rothman of Greenstone Roberts Public Relations, 305-975-3500, for RailAmerica, Inc./

CO: RailAmerica, Inc. ST: Virginia IN: TRN SU:

AW-JB -- FL004 -- 4035 02/08/93 11:05 EST
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Publication:PR Newswire
Date:Feb 8, 1993

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