By James McCandless
San Antonio, Nov. 22 – Fortress Transportation & Infrastructure Investors LLC priced a $100 million offering of $25-par series B fixed-to-floating rate cumulative perpetual redeemable preferred shares at par with an initial dividend of 8%, according to a 424B2 filing with the Securities and Exchange Commission.
There is a $15 million greenshoe.
The deal was announced Friday morning.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.
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 644.7 basis points.
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.
| Issuer: | Fortress Transportation & Infrastructure Investors LLC
|
| Description: | Series B fixed-to-floating rate cumulative perpetual redeemable preferred shares
|
| Amount: | $100 million, or 4 million shares
|
| Greenshoe: | $15 million, or 600,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc.
|
| Co-managers: | Raymond James & Associates, Inc., B. Riley FBR, Inc., BTIG, LLC and Oak Ridge Financial Services Group, Inc.
|
| Dividend: | 8% until Dec. 15, 2024, then converts to a floating rate of Libor plus 644.7 bps
|
| Price: | Par of $25.00
|
| Yield: | 8%
|
| Call: | On or after Dec. 15, 2024; prior to that, 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
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 27
|
| Distribution: | SEC registered
|
| Listing: | NYSE: FTAIPrB
|
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