RailAmerica Shares Trading on NYSE

Shares of RailAmerica began trading Tuesday on the New York Stock Exchange under the symbol "RA."

Fortress Investment Group LLC announced RailAmerica, Inc.'s initial public offering of 10,500,000 primary shares of common stock, as well as the offering of 11,500,000 secondary shares of common stock of RailAmerica, Inc. by RR Acquisition Holding LLC, an entity owned by private equity funds managed by a Fortress affiliate. The shares were initially priced at $15 per share, slightly under the earlier estimate.

Fortress funds acquired the railroad holding company in February 2007 and will continue to own approximately 55.8 percent 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 any over-allotments.

RailAmerica generated total operating revenue last year of $508.5 million and net income of $16.5 million. It had total operating revenue of $206.5 million and net income of $19.2 million for the six months ended June 30, 2009, according to an SEC filing.

RailAmerica operates a portfolio of 40 short line railroads with approximately 7,500 miles of track in 27 U.S. states and three Canadian provinces. Its railroads hauled more than one million carloads of freight for approximately 1,800 customers last year.

It owns about 4,500 track-miles and leases approximately 3,000 track-miles. RailAmerica also owns 240 locomotives and 524 railcars and leases an additional 206 locomotives and 7,195 railcars.