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SANTA FE AND SOUTHERN CALIFORNIA TRANSPORTATION AGENCIES REACH DEFINITIVE AGREEMENTS FOR SALE OF COMMUTER RAIL LINES

 SANTA FE AND SOUTHERN CALIFORNIA TRANSPORTATION AGENCIES REACH
 DEFINITIVE AGREEMENTS FOR SALE OF COMMUTER RAIL LINES
 SCHAUMBURG, Ill., Nov. 3 /PRNewswire/ -- Santa Fe Railway and certain Southern California transportation agencies have reached definitive agreements for the sale of certain interest in 340 miles of rail lines and additional property. The agreements reflect the provisions announced in a negotiated term sheet signed June 18, 1992.
 "A complete Southern California commuter rail system can become a reality now. Santa Fe Railway lines will provide two-thirds of the long awaited network being assembled by the transportation agencies. We are pleased the final phase of the negotiations has been completed. Acquisition and operation of the Santa Fe system will permit the agencies to offer efficient commuter rail service to the citizens of Southern California," said Robert D. Krebs, chairman, president and chief executive officer.
 The definitive agreements specify agreements that Santa Fe will be paid $500 million in cash in three phases and will retain all rights necessary for its extensive freight operations in Southern California; the transportation agencies also will pay more than $80 million for initial capital improvements to rail facilities to accommodate commuter traffic on the San Bernardino, Olive and San Diego subdivisions; and the railroad will be relieved of the obligation to reimburse certain state and county agencies for $46 million in capital expenditures on the rail lines previously paid by these agencies and the State of California.
 The California Transportation Commission has allocated $117 million in state funding of approximately $270 million to be paid at closings in December 1992. The sale is subject to approval by the boards of the California transportation agencies and the Santa Fe, appropriate action by the Interstate Commerce Commission and a favorable tax ruling by the Internal Revenue Service on aspects of the counties' financing.
 -0- 11/3/92
 /CONTACT: Catherine A. Westphal of Santa Fe Railway, 708-995-6273/ CO: Santa Fe Railway ST: Illinois IN: TRN SU:


TS -- NY009 -- 1936 11/03/92 09:02 EST
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Publication:PR Newswire
Date:Nov 3, 1992
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