UPDATE: Deutsche Bank Raises PT to $23 on RailAmerica

Deutsche Bank raises its price target on Hold-rated RailAmerica )NYSE: RA) to $23, up $4, reflecting tailwinds from the debt refinancing and tender. Deutsche Bank says, "Yesterday, RA announced the closing of its new $585 million term loan that will carry a rate of LIBOR + 3% (1% LIBOR floor), which will be used to refinance its 9.25% notes due in 2017. RA will materially lower its WACC through its tender offer and refinancing. Accordingly, we have raised our 2012-13 EPS estimates to $1.21 and $1.40 (from $0.99 and $1.15), respectively. Shares have rallied 38% (vs. S&P 500 up 4%) since the acquisition and tender announcements on February 1 and we believe much of this news is already priced into RA shares." RA closed at $21.40 a share on Friday.