SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported) February 24, 1999
Florida East Coast Industries, Inc.
(Exact name of Registrant as specified in its charter)
Florida
(State or other jurisdiction of incorporation)
2-89530 59-2349968
(Commission File Number) (IRS Employer Identification No.)
One Malaga Street, St. Augustine, FL 32085-1048
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 904-829-3421
1650 Prudential Drive, Jacksonville, FL 32207
(Former name or former address, if changed since last report)
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
======================================================
See the following Press Releases dated February 24 and 25, 1999, announcing
the appointments of Heidi Eddins as Senior Vice President, General Counsel
and Secretary and Robert F. MacSwain as Executive Vice President of Special
Projects of Florida East Coast Industries:
"HEIDI EDDINS BECOMES SENIOR VICE PRESIDENT, GENERAL COUNSEL AND
SECRETARY OF FLORIDA EAST COAST INDUSTRIES (NYSE: FLA)
"St. Augustine, Florida-February 24, 1999) Robert W. Anestis, Chairman and Chief
Executive Officer of Florida East Coast Industries (NYSE: FLA) today announced
the appointment of Heidi J. Eddins as FECI's Senior Vice President, General
Counsel and Secretary. Eddins will assume her new position on March 15, 1999.
"Heidi Eddins' extensive railroad background, her first-hand experience
structuring real estate transactions and, above all, her energy and enthusiasm
make her an invaluable addition to the FECI senior management team," said
Anestis. "We plan to make our rail operations more productive, to maximize the
returns on our real estate, and to identify creative and profitable ways to
leverage the telecommunications and other non-freight potential of our rail
assets. Heidi gives us the in-house expertise to attack each of these fronts
successfully."
"Eddins has served for over 16 years, most recently as Vice President, General
Counsel and Secretary, with Providence and Worcester Railroad Company (AMEX:
PWX), a 545-mile regional railroad headquartered in Worcester, Massachusetts.
At Providence and Worcester, Eddins provided the full and complex range of
legal services needed to support the successful daily operations of a regional
railroad company. Her responsibilities included labor relations with Providence
and Worcester's unionized work force, contract negotiations (including
acquisition transactions) with connecting carriers, risk management,
environmental management, reporting to the Securities and Exchange Commission
and other oversight authorities, and investor relations with Providence and
Worcester shareholders.
"Eddins also played a key role in increasing the value of the railroad's real
estate holdings, including the successful advocacy at the Federal and state
level of a $120 million freight rail improvement project (FRIP)in the state of
Rhode Island. She negotiated and managed real estate transactions such as
licenses, leases, easements and sales. She also has negotiated numerous
agreements for the installation of fiber optic lines by telecommunications
companies on Providence and Worcester's rights of way.
"Florida East Coast Industries conducts its operations primarily through two
wholly owned subsidiaries-Florida East Coast Railway Company and Gran Central
Corporation. FEC Railway carries freight traffic within the state of Florida
on 442 miles of track, including its mainline, which runs from Jacksonville to
Miami. Gran Central Corporation develops, leases, and manages approximately
seven million square feet of office, showroom and warehouse space on 18,000
acres of real estate. The Company also has a trucking subsidiary, International
Transit, Inc., which provides truckload service throughout the southeastern
United States.
"Anestis noted that in recent years FECI has relied exclusively on outside
counsel for its legal needs. "FECI is aggressively pursuing a number of new
directions to increase the return on all of our assets. In this creative new
environment, knowledgeable and visionary in-house legal guidance is essential,"
said Anestis. "Heidi's rare combination of skills perfectly match the demands
FECI's expanding set of activities are creating."
"I am excited by FECI's prospects," said Eddins. "It has a strong rail operation
that can become even stronger, its real estate assets will be an increasing
source of value, and the economic potential of linking its right of way with
the telecommunications infrastructure of the next century is tremendous. I
look forward to using my background in each of these areas to make FECI
efforts as successful as possible."
"Heidi has been a valuable member of the P&W management team for 16 years and
has contributed to the Company's success in a multitude of ways. While we are
disappointed by Heidi's departure, we are delighted for the opportunity the
FECI position presents her. I am certain that she will be an equally valuable
contributor to the future of that company and wish her every success in her new
endeavor," said Orville R. Harrold, President, Providence and Worcester Railroad
Company.
"Eddins is a summa cum laude graduate of Boston College and a 1981 honors
graduate from the University of Connecticut School of Law where she served as
Executive Editor of the Law Review. Prior to joining Providence and Worcester,
she practiced law at the Hartford, Connecticut firm of Updike, Kelly and
Spellacy for 3 years. She is licensed to practice law in Connecticut,
Massachusetts and Rhode Island and is past president of the Railroad Insurance
Management Association and both the Massachusetts and Connecticut Railroad
Associations. A member of numerous professional organizations, she was the
recipient of the 1998 Leadership Award to Women in Business given by the New
England Council. She and her husband, Charles, have three children, Katherine,
Scott and Brett."
==================================
"FLORIDA EAST COAST INDUSTRIES (NYSE: FLA)NAMES ROBERT MACSWAIN
EXECUTIVE VICE PRESIDENT FOR SPECIAL PROJECTS
"St. Augustine, Florida-(February 25, 1999)-Robert W. Anestis, Chairman and
Chief Executive Officer of Florida East Coast Industries (NYSE: FLA) today
announced the appointment of Robert F. MacSwain as Executive Vice President for
Special Projects. MacSwain has been serving in that position since February 1,
1999.
"Over the last 15 years, I have worked with Bob MacSwain on a number of projects
to bring out the non-rail value associated with the assets of rail companies"
said Anestis. "His work on behalf of Guilford Transportation Industries,
Chicago and Northwestern, CSX, and Canadian National has produced real estate
and telecommunications value for the shareholders of those companies. Bob is a
skilled negotiator with a real nose for value. His talent will be a great asset
to FECI."
"For the last two years, MacSwain has been consulting with FECI to identify
opportunities to unleash the telecommunications potential of the company's
right-of-way. MacSwain worked with Anestis and FECI in negotiating transactions
in which Qwest and Williams Network agreed to pay substantial rental income for
using optical communication fibers installed along FECI's right-of-way between
Jacksonville and Miami. In the transaction with Williams, FECI also gained
ownership of 36 dark fiber optic communication fibers. In addition, MacSwain
helped to negotiate a "conduit swap," whereby FECI will gain access to a fiber
optic conduit connecting Miami to Daytona Beach through Naples/Ft. Myers, Tampa,
and Orlando. As a result of these transactions, FECI is receiving steady revenue
and has established a telecommunications potential that links 13 of the top 15
major population centers in Florida.
"Bob has already delivered extraordinary value for FECI," said Anestis. "As a
member of our senior management team, his talent will increase the return FECI
earns on our substantial assets."
"MacSwain has over 30 years experience structuring real estate transactions.
For 18 years he worked at ITT Hartford in a series of positions, including Vice
President and General Manager of that insurance company's extensive 437 Land
Company portfolio of real estate properties. He headed Guilford Transportation
Industries' real estate divisionfor three years and for the last 11 years has
been a private consultant assisting major companies such as AT&T to develop
tactics to support their telecommunications strategies.
"Over the last two years I have come to appreciate the potential of FECI's
holdings," said MacSwain. "Quite apart from its portfolio of real estate in
Gran Central, non-freight applications of its rail corridor can produce
significant value for the company. All of my efforts will be focused on
extracting that value."
"Florida East Coast Industries conducts its operations primarily through two
wholly owned subsidiaries-Florida East Coast Railway Company and Gran Central
Corporation. FEC Railway carries freight traffic within the state of Florida
on 442 miles of track, including its mainline, which runs from Jacksonville
to Miami. Gran Central Corporation develops, leases, and manages approximately
seven million square feet of office, showroom, and warehouse space on 18,000
acres of real estate. The Company also has a trucking subsidiary, International
Transit, Inc., which provides truckload service throughout the southeastern
United States.
"Bob MacSwain is 56 years old and graduated cum laude from the University of
Notre Dame. He and his wife, Jean, have one son, Brian, who is a lawyer in
Boston."
SIGNATURE
=========
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FLORIDA EAST COAST INDUSTRIES, INC.
BY: s/s T. Neal Smith
Vice President & Secretary
Dated: 2/26/99
