By Paul A. Harris
Portland, Ore., June 29 – Fortress Transportation and Infrastructure Investors LLC priced a downsized $450 million issue of FTAI Escrow Holdings, LLC 10½% five-year senior secured notes (B2/B-) at 94.585 to yield 12% on Wednesday, according to market sources.
The issue size decreased from $500 million.
The coupon came wide to the 10¼% coupon talk. The yield printed at the wide end of the 11¾% to 12% yield talk.
The order book was heard to be around deal size on Wednesday morning, dominated by larger orders from accounts expected to put the bonds away in their portfolios, a sellside source said.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Barclays was joint bookrunner.
Proceeds will be used to fund the spinoff of FTAI Infrastructure.
The issuing entity, FTAI Escrow Holdings, is set to be merged with FTAI Infrastructure upon completion of the spinoff.
The issuer is a New York-based supplier of infrastructure and equipment to the aviation, energy, intermodal transport and rail industries.
| Issuer: | FTAI Escrow Holdings, LLC
|
| Amount: | $450 million
|
| Issue: | Senior secured notes
|
| Maturity: | June 1, 2027
|
| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunner: | Barclays
|
| Coupon: | 10½%
|
| Price: | 94.585
|
| Yield: | 12%
|
| Spread: | 866 bps
|
| First call: | June 1, 2025 at 105.25
|
| Trade date: | June 29
|
| Settlement date: | July 7
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% coupon to yield 11¾% to 12%
|
| Marketing: | Roadshow
|
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