Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of regional rail operator RailAmerica
So what: Genesee agreed to pay $1.4 billion, or $27.50 per share, for RailAmerica. The 11% premium for the buyout may not seem like much, but the price that Genesee is paying is almost 30% above the closing price on May 21, which was the day before RailAmerica announced that it was looking to sell itself.
The deal will put a significant amount of new debt on Genesee's balance sheet as it's gotten $2.3 billion in committed debt financing from Bank of America
Now what: The deal here has one financial institution -- Fortress Investment Group
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Fool contributor Matt Koppenheffer owns shares of Bank of America but has no financial interest in any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.
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