Fortress Transportation and Infrastructure Prices Preferred Issue

Fortress Transportation and Infrastructure LLC (NYSE:FTAI)has priced their previously announced preferred issue with an initial fixed coupon of 8.25%.

The issue is fixed-to-floating rate and the floating rate period begins 9/15/2024. The floating rate is 3 month Libor plus a spread of 6.886%.

This issue will send a K-1 at tax time.

The pricing term sheet can be read here.

8 thoughts on “Fortress Transportation and Infrastructure Prices Preferred Issue”

    1. You could have bought it at par or slightly below a little earlier on Fidelity.

      Ooof, I just looked, someone made the mistake of using a market order and got hosed paying $25.77

    2. JPM quoting 25.40 at about 3 pm. Yesterday the guy I deal with did not even know that the offering was going to be made. It Hit the troops yesterday not today. Frustrating. SC

    1. That can’t be answered yes or no. It won’t pay a dividend, it will pay a partnership distribution.

      The term sheet doesn’t say what kind of distributions they will be, so it’s impossible to know how they will be taxed. Maybe the prospectus says something.

  1. Tim
    I too would be interested in your take on the issue. Given the engine leases that they now have, I’m fairly certain that they can cover their payouts. I think the company is rather small and specialized which means that it does not get much love. A bit like RC but I know FTAI a bit better than RC so have a view on the management. Interested in your take. tia sc

  2. Hi Tim, as always thanks for all the great information. This issue is a perplexing one for me. FTAI has a market cap of $1.3B and pays a dividend of 8.9% which “protects” the Preferred payments. Their 2025 Bonds are trading at 5.7% YTM, they just came off a great quarter but 8.25% coupon in today’s environment indicates significant risk and the issue is trading under par OTC. What’s your view of this issue. Thanks

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