Fortress/Drawbridge plans $50 million tap of 5% senior notes due 2021 in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Oct. 28 – Fortress/Drawbridge Fund scheduled a conference call with investors at 11:30 a.m. ET on Tuesday to discuss a proposed $50 million add-on to its non-callable 5% senior notes due Aug. 1, 2021 (/expected BBB/), according to an informed source.

The deal, which is in the market as a Rule 144A for life offer with no Regulation S formatting, is set to price Tuesday afternoon.

The transaction will be done on the high-yield desk despite the expected BBB rating from Standard & Poor's; in the absence of ratings from either Fitch Ratings or Moody’s Investors Service, investors view the deal as “high yield,” the source said.

Wells Fargo Securities LLC is the left bookrunner. Natixis is the joint bookrunner.

The issuing entities are Drawbridge Special Opportunities Fund LP and Drawbridge Special Opportunities Finance Corp.

The New York-based investment partnership plans to use the proceeds for general corporate purposes, including new investment opportunities.

The original $300 million issue priced at 98.541 to yield 5¼%, or 313 basis points over Treasuries, on July 11.

The add-on notes will be immediately fungible with the original notes.

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