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Fortress plans $75 million revolver, has ‘multiple financing options’
By Devika Patel
Knoxville, Tenn., May 5 – Fortress Transportation and Infrastructure Investors LLC is in the process of negotiating a $75 million revolver after selling $250 million issue of 6¾% five-year notes in the last quarter.
The company says it has access to the high-yield market “at any time” and also now has “multiple financing options available.”
“We are putting in place a new $75 million revolver at the corporate level and we are also finalizing a $20 million revolver at Repauno,” chief executive officer Joseph P. Adams Jr. said on the company’s first quarter earnings conference call on Friday.
“We completed our inaugural high-yield bond offering in February with a $250 million five-year note offering and those bonds are trading well and we now have access to that market at any time.
“In short, as our growth accelerates, we have multiple financing options available, which is a good spot to be in,” Adams said.
Adjusted EBITDA for the first quarter was $22.1 million, compared to $22.4 million in the fourth quarter of 2016 and $12.3 million in the first quarter of 2016.
Funds available for distribution were $21.7 million in the first quarter, compared to $20.5 million in the fourth quarter of 2016 and $32.9 million in the first quarter of 2016.
On March 10, Fortress priced a $250 million issue of 6¾% five-year senior notes (B1/B+) at 97 to yield 7.48%.
The coupon, reoffer price and yield came on top of talk.
In a structural change, call protection was increased to three years from 2.5 years. There were also covenant changes.
Morgan Stanley & Co. LLC was the bookrunner.
The New York-based owner of transportation equipment and infrastructure used the proceeds to refinance existing term loan debt of $100 million and for general corporate purposes, including future investments.
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