RailAmerica IPO Scheduled for Tues., 13 Oct. 2009

Trains Magazine General Discussion
1

Just FYI re: the above - there’s a short article in today’s (Mon., 12 Oct. 2009) Wall Street Journal, page C-3, head-lined as follows:

RailAmerica IPO Calls the ‘All Aboard’## Regional Track Operator Plans a $357 Million Offering on the NYSE

It’s also at the following link:

http://online.wsj.com/article/SB125530184574579091.html?mod=article-outset-box

Note

2

That was a short lived private equity holding.

Has anyone seen the prosectus?

ed

3

From the article:

So, FEC is not included in the IPO? I thought Fortress had integrated FEC into RA?

4

I think RailAmerica profolio is going to take them to the next level. They need the cash to survive this market and expand their operation. If you notice they had kept their R.R. names but change some of their assets to RailAmerica.

5

Apparently this IPO didn’t do too well - some excerpts, from:

http://online.wsj.com/article/BT-CO-20091013-714230.html

3rd UPDATE: Freight Line Co RailAmerica Down 8% Post-IPO

''The stock closed at $13.75 a share on the New York Stock Exchange, down 8% from its initial public offering price of $15. A total of 22 million shares were sold in the offering at a price below its expected $16 to $18 range.

. . .

Analysts said that RailAmerica’s deal, even at its lowered price, didn’t compare favorably to other publicly traded companies in its industry; competitor Genesee & Wyoming Inc. (GWR) sells at approximately 17 times trailing price-to-earnings ratio, while RailAmerica sold at 50 times PE, Sweet said.‘’

-Paul North.

6

I used to own shares in RailAmerica until they went private…now they want to go public again?..sorry guys…not this time…

7

I’ll buy in when it gets to 2 3/8 where I bought it last time. Made decent $$ on it. Sold too early though…

LC