Fortress Investment Group has priced RailAmerica’s initial public offering of 10,500,000 primary shares of common stock at USD15 per share.
A further 11,500,000 secondary shares of common stock of RailAmerica are being offered by RR Acquisition Holding, an entity wholly-owned by certain private equity funds managed by an affiliate of Fortress Investment Group.
Fortress funds acquired the company in February 2007 and will continue to own approximately 55.8 per cent of RailAmerica after the closing of the offering.
In connection with the offering, RailAmerica granted the underwriters a 30-day option to purchase up to 1,575,000 additional shares of common stock, and RR Acquisition Holding granted the underwriters the option to purchase up to 1,725,000 additional shares of common stock, to cover over-allotments, if any.
The shares will begin trading on 13 October 2009 on the New York Stock Exchange. The offering is expected to close on 16 October 2009.
J.P. Morgan Securities, Citigroup Global Markets, Deutsche Bank Securities and Morgan Stanley are acting as representatives for the underwriters of this offering.
