By James McCandless
San Antonio, Sept. 5 – Fortress Transportation and Infrastructure Investors LLC priced a $75 million offering of $25-par series A fixed-to-floating rate cumulative redeemable perpetual preferred stock with an initial dividend of 8.25%, according to a 424B2 filing with the Securities and Exchange Commission.
There is an $11.25 million greenshoe.
The deal was announced on Thursday morning.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.
The dividend is fixed until Sept. 15, 2024, then converts to a floating rate of Libor plus 688.6 basis points.
The preferreds are redeemable on or after Sept. 15, 2024 at par. Prior to that, they are redeemable at $25.25 after a tax redemption event, at $25.25 within 120 days after a change of control or at $25.50 within 120 days after a rating event.
Fortress plans to use the proceeds for general corporate purposes, including the funding of future acquisitions and investments.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “FTAIPrA.”
Fortress is a New York City-based owner and leaser of transportation infrastructure.
| Issuer: | Fortress Transportation and Infrastructure Investors LLC
|
| Description: | Series A fixed-to-floating rate cumulative redeemable perpetual preferred stock
|
| Amount: | $75 million, or 3 million shares
|
| Greenshoe: | $11.25 million, or 450,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc.
|
| Dividend: | 8.25% until Sept. 15, 2024, then converts to a floating rate of Libor plus 688.6 bps
|
| Price: | Par of $25.00
|
| Call: | On or after Sept. 15, 2024 at par; prior to that, at $25.25 after a tax redemption event, at $25.25 within 120 days after a change of control or at $25.50 within 120 days after a rating event
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 12
|
| Distribution: | SEC registered
|
| Listing: | NYSE: FTAIPrA
|
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