Fortress Transportation plans $25-par fixed-to-floating preferreds

By James McCandless

San Antonio, Nov. 22 – Fortress Transportation & Infrastructure Investors LLC plans to price an offering of $25-par series B fixed-to-floating rate cumulative perpetual redeemable preferred shares at par, according to a 424B2 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

Co-managers are Raymond James & Associates, Inc., B. Riley FBR, Inc., BTIG, LLC and Oak Ridge Financial Services Group, Inc.

Dividends are payable on March 15, June 15, Sept. 15 and Dec. 15 of each year, commencing on March 15, 2020.

The dividend is fixed until Dec. 15, 2024, then converts to a floating rate of Libor plus a spread.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a rating event at $25.50, after a change of control at $25.25, or after a tax redemption event at $25.25.

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 “FTAIPrB.”

Fortress is a New York-based infrastructure and equipment leasing company.

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