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Arnold & Porter Advises BRX in Proposed Acquisition of Pioneer Railcorp

July 31, 2019

Arnold & Porter advised BRX Transportation Holdings, LLC (BRX) in its acquisition of Pioneer Railcorp (OTC: PRRR, Pioneer), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company. BRX, an entity formed by Brookhaven Rail Partners, Related Infrastructure and Stephens Capital, acquired Pioneer for $18.81 per share in cash. Pioneer shareholders approved the transaction on July 19, 2019, and the transaction closed on July 31, 2019.

BRX was formed to purchase Pioneer as a platform investment and intends to invest additional capital to upgrade Pioneer's existing infrastructure and grow Pioneer's franchise through industrial development and the expansion of services to its customers. BRX also intends to pursue the acquisition of additional short-line railroad companies.

The Arnold & Porter team was led by Denver-based Corporate & Finance partner Ron Levine and associates Carlyn Williams and Evan Leitch, with significant assistance from partner Sheryl Gittlitz (NY) on debt financing, senior associate Sarah Grey (DEN) on environmental, partner Jeff London and senior associate Megan Juel (CHI) on compensation and benefits matters, and counsel Will Needle and partner Ben Berk (SF), and senior associate Sarah Soloveichik (NY) on tax.

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