Friday, September 14, 2012

GWI prices Wall Street offerings

Written by  Luther S. Miller, Senior Consulting Editor

Genesee & Wyoming Inc (GWR) announced Friday that it has priced its previously announced offering of 3,500,000 shares of Class A common Stock—including 233,966 shares held by its board chairman—at $64.75 per share, resulting in aggregate gross proceeds of $211.5 million.

The company is also offering 2,000,000 of 5.00% tangible equity units, each with a stated amount of $100, resulting in aggregate gross proceeds of $200.0 million.

GWIR intends to use the net proceeds of the offerings to partially pay for its acquisition of RailAmerica Inc.

GWI said it has granted the underwriters of the Class A Common Stock offering a 30-day option to purchase up to an additional 525,000 shares of Class A Common Stock and the underwriters of the tangible equity units offering an option to purchase, within a 13-day period beginning on, and including, the initial issuance date for the tangible equity units, up to an additional 300,000 tangible equity units.

BofA Merrill Lynch, Citigroup and J.P. Morgan are serving as the joint book-running managers for the Class A Common Stock offering. BB&T Capital Markets, RBC Capital Markets, Wells Fargo Securities, Santander, Raymond James, Stifel Nicolaus Weisel, Dahlman Rose & Co., LLC, Stephens Inc., and Wolfe Trahan Securities are serving as co-managers.