Brookfield and GIC close G&W buyout

30 December 2019 - 12:00 am UTC

Brookfield and GIC have reached financial close on their roughly USD 8.4bn buyout of Genesee & Wyoming (G&W), the short line railroad operator announced on 30 December.

Under the deal, each outstanding share of G&W converted into the right to receive USD 112 and the company’s common stock ceased trading on the New York Stock Exchange, the press release stated. The final deal represents a 39.5% premium on G&W’s share price before talk of a deal emerged in March.

Brookfield is providing USD 500 in equity from its Brookfield Infrastructure Fund IV vehicle, according to a regulatory filing this summer, with institutional partners contributing an additional roughly USD 3.53bn in equity. GIC is committing USD 1.5bn. The deal was backed by a USD 2.55bn term loan led by Credit Suisse as well as a USD 600m revolver.

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