Just ran across this blurb in the TU
http://jacksonville.com/business/2009-10-13/story/railamericas_stock_opens_lower_after_ipo
QuoteAfter its initial public offering was priced lower than it had hoped Monday night, RailAmerica Inc.’s stock opened trading even lower today.
RailAmerica’s offering of 22 million shares of stock was priced at $15 a share Monday. That’s lower than the $16 to $18 price range the company had estimated in a Securities and Exchange Commission filing last month.
When trading in the stock began this morning on the New York Stock Exchange, it opened lower than the IPO price at $14.35. The stock trades under the ticker symbol “RA.â€
RailAmerica is a Jacksonville-based company that operates short-line railroads.
The IPO consisted of 10.5 million new shares issued by the company and 11.5 million shares sold by funds managed by Fortress Investment Group LLC.
Fortress, a New York investment firm that acquired RailAmerica in 2007, still controls 55.8 percent of the stock after the IPO.
Does anyone know anything about these guys?
They own the Florida East Coast railroad. Moved their corporate headquarters here last year from south Florida. Their stock is sold separately from FEC stock.
http://www.railamerica.com/Files/RRmap.swf
http://en.wikipedia.org/wiki/Fortress_Investment_Group
QuoteFortress Investment Group LLC (Fortress Investment Group) (NYSE: FIG) is a New York, New York-based alternative asset management firm that manages private equity funds, hedge funds, real estate funds, and railroad-related investments, with announced plans to move into casinos and horse racing. The company went public on February 9, 2007.[1]
[edit] History
Fortress Investment Group LLC was founded as a private equity firm in 1998 by Wesley R. Edens, a former partner at BlackRock Financial Management, Inc.; Robert Kauffman, a managing director of UBS; and Randal A. Nardone, also a managing director of UBS. Fortress quickly expanded into hedge funds, real estate-related investments and debt securities, run by Michael Novogratz and Pete Briger, both former partners at Goldman Sachs.
Fortress Investment Group's investments grew rapidly, with its private equity funds netting 39.7% between 1999 and 2006.[2]
As of September 30, 2006, the most recent date for which figures were available before Fortress Investment Group's IPO the firm held around $17.5 billion in private equity, around $9.4 billion in hedge funds and managed two publicly-traded investment companies:
Newcastle Investment Corporation (NYSE: NCT),
Eurocastle Investment Limited (Euronext AMS): ECT
[edit] Portfolio Companies
In 2005, Fortress-managed Funds acquired Canadian ski resort operator Intrawest.
On November 15, 2006, RailAmerica Inc. announced that a Fortress-managed Fund would acquire the company, offering $16.35 per share (a 32% premium). The transaction was completed in February 2007.
On May 8, 2007, Florida East Coast Industries (FECI), parent company of Florida East Coast Railroad, announced that following a unanimous vote of the FECI Board of Directors, a Fortress-managed Fund would acquire FECI in a transaction valued at $3.5 billion.[3] The Surface Transportation Board approved the transaction in September 2007.
On June 15, 2007 Fortress announced it would partner with Centerbridge Partners to acquire Penn National Gaming (NASDAQ: PENN), an operator of casinos and horse racing venues, for $6.1 billion. Penn National shareholders were to receive $67 cash for each share. It was announced on July 3rd, 2008, that Fortress had backed away from the agreement amid weakness in the economy and financial markets. Under the termination agreement, Penn National receives $1.475 billion, consisting of a break-up fee of $225 million and an interest-free $1.25 billion loan from Fortress, Centerbridge, Wachovia and Deutsche Bank. Fortress CEO Wesley Edens assumes a seat on the board of Penn National as part of the agreement. [4] [5]
Fortress has returned several of its private equity investments to public trading, including Aircastle Ltd., Brookdale Senior Living Inc. and GateHouse Media (which was since de-liseted in 2008).
[edit] Controversies
In 2006, Fortress paid Sen. John Edwards, candidate for the 2008 Democratic Party nomination for president, and the 2004 nominee for vice president, $479,512 for his consulting services, a part-time job. [1] The November 19, 2007 edition of the Wall Street Journal reported Edwards had invested $16 Million in Fortress and Fortress had bought poor performing New Orleans mortgages with the intention of foreclosing on properties in the Hurricane Katrina affected area through affiliates. His relationship with Fortress hurt Edwards presidential campaign as he claimed to be a supporter of average Americans.
Fortress Investment Group has backed a patent holding firm IP-Com. This firm is now suing Nokia for patent infringement for $17.77 billion.[citation needed]
Fortress Investment Group was the primary lender to Millennium Development Group for building the $875 million (CAD) athlete's village for the 2010 Winter Olympics in Vancouver, British Columbia. Financial instability in September 2008 saw Fortress Investment Group reportedly at the brink of bankruptcy. Consequently, Fortress refused further financing to Millennium due to rising project costs, forcing the City of Vancouver to pay approximately $450 million (CAD) to attempt to complete the project in time for the Winter Olympic Games.[2]. The City of Vancouver applied for and received legislative approval from the Province of BC to borrow as much money as required to enable the project to complete. [3] Anti-Olympic groups have spoken out against the legislative change because Fortress Investment will still contractually remain the owner of the village after the 2010 Winter Olympics.[4]
In the wake of the economic downturn of 2008, Forbes included Wesley Edens (and two other Fortress principals) among its "biggest billionaire losers of 2008," noting that Edens had "watched his fortune dwindle as investor redemptions soared at the company's flagship fund."[6] Fortress and its principals were featured in an April 2009 Vanity Fair article on the adverse economic conditions facing hedge funds.[7]
http://www.railpictures.net/images/d1/4/0/8/7408.1229205216.jpg (http://www.railpictures.net/images/d1/4/0/8/7408.1229205216.jpg)
Quote from: JeffreyS on October 13, 2009, 01:30:39 PM
They own the Florida East Coast railroad.
I am not sure, but, to be techinically precise, it appears from the Wikipedia article and other sources, that FEC and Rail America may actually be SISTER companies, both controlled by the common ownership and management of Fortress Investment.
It looks thatr way. My brother in law works for Rail America I will try to find out for sure.
If they don't directly own, then they surely operate FEC.
Gee whiz..........makes me wonder just where the SEC probe is at? There appears to be a conflict of interest since the left hand is making transactions with the right hand! I am somewhat apprehensive at what appears to be happening with Rail America and even if I could afford it would not consider stock purchase!