FTAI Infrastructure will use add-on notes to repay bank debt

Chicago, June 29 – FTAI Infrastructure Inc. announced that it would use the proceeds from a $100 million add-on to its 10½% secured notes due 2027 to repay bank debt, according to an 8-K filing with the Securities and Exchange Commission.

The company will be repaying the amount outstanding under a revolver from borrowing subsidiary Transtar LLC and a bridge loan credit agreement.

Transtar is FTAI’s railroad segment. Details were not given on the revolver.

The $25 million bridge loan was signed on May 18 with Barclays as administrative agent. The superpriority obligations matured Dec. 31, 2023. Interest was at SOFR plus 750 basis points. There was a financial covenant that FTAI had to maintain a consolidated first-lien leverage ratio of no more than 11.5x. The loan will be repaid in full.

In the same filing, the company mentioned that Fortress Investment Group, LLC and Mubadala Investment Co. would be buying all of the equity of Fortress that was held by SoftBank Group Corp. The agreement was signed May 22. After the transaction closes, Fortress will continue to operate under the Fortress brand with autonomy over investment processes and decision making.

The issuer is a New York-based supplier of infrastructure and equipment to the aviation, energy, intermodal transport and rail industries.

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