Fortress Transportation and Infrastructure Announces Fixed to Floating Preferred-Corrected

Correction–FTAI is a LLC and thus Non-Qualified and will issue a K-1.

Transportation infrastructure company Fortress Transportation and Infrastructure (FTAI) has announced the issuance of a new issue of Fixed-to-Floating Rate preferred stock.

The company currently has 1 other fixed-to-floating rate coupon issue which was sold in September with a fixed rate of 8.25% which moves to floating on 9/15/2024 with a coupon of 3 month Libor plus a spread of 6.886%. This issue is currently at $25.79 after trading as high as the $26.40 area prior to the new issue announcement. You can see it here.

Obviously this issue is not investment grade, but will be cumulative, but NON qualified (K-1)

The preliminary prospectus is here.

Eugene was right on top of this one earlier this morning.

8 thoughts on “Fortress Transportation and Infrastructure Announces Fixed to Floating Preferred-Corrected”

  1. On pg 27 of the prospectus mentioned above, they do not seem to have actually arrived at how they will be taxed/or not.
    So- how does it already have K-1 status- just assumed?
    Another author has it as a 1099


  2. 1/22/2019 12:09:00 Addition 11/22/2019 00:00:00 FTABP Fortress Transportation & Infrastructure Investments LLC Perpetual Preferred Series B

    1. FTAI is really two operating companies.
      l. An aircraft and aircaraft leasing firm. This part of the business has been growing at a very steady pace and will continue to do so as they have some new modes of operating under development which should further strengthen their activities. I expect that this part of the business will be spun out as a separate activity within the next two to three years.
      2.The second part is a group of infrastructure projects which are only now starting to come on line. Since the public market for these now is not very strong,look to the company to sell off parts of it.
      What is a little surprising is that the firm just sold a railroad asset for 130MIllion which was at least 30 Million dollars above expectations. As such they have considerable cash. Interesting to see how things progress.

    1. If you have some fun money that was sitting under your mattress, then you can throw some at it. Rida might have a “Great High Yield and Safe Investment” article on it. I personally don’t like throwing money on investments that are not cash flow +. I dont know if they are affiliated with fortress investments… but if they are, then i really really dont like this one.

      1. Fortress Transportation and Infrastructure Investors LLC is externally managed by FIG LLC, an affiliate of Fortress Investment Group LLC.

        Yup. And a very weird long term chart – must have spun off or something- was in the hundreds of $$

        1. and remember Fortress Inv Group LLC is now controlled and owned by Softbank ( the Japanese multinational investment conglomorate ) .. after what happened w SNR, FIG involvment is a no touch involvment to me.

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