Fortress Transportation and Infrastructure Investors signs subscription agreements with Ares

• Fortress Transportation and Infrastructure Investors (NASDAQ:FTAI) subsidiaries FTAI Infrastructure and Transtar entered into subscription agreements with entities related to Ares Management.
• Post the agreements, FTAI Infrastructure agreed to sell to the subscriber 300K shares of newly-created Series A Senior Preferred Stock, warrants to purchase 3.3M shares of FTAI Infrastructure at an exercise price of $10/share.
• Also, warrants representing the right to purchase 3.34M shares at an exercise price of $0.01/share for $300M net of an amount equal to $9M.
• FTAI Infrastructure plans to distribute the net proceeds from the subscription to the company in relation to the spin-off.

Comments

[OiiO]

"Dividends on the Series A Preferred Stock will be payable at a rate equal to 14.0% per annum"
"The dividend rate on the Series A Preferred Stock will increase by 1.0% per annum beginning on the fifth anniversary of the issuance date of the Series A Preferred Stock."
Yep ... 14% ... :/

[diy88888]

good news! LONG FTAIN! gorgeous yield!

[Chip Oat]

@diy88888 Why is this good news? It looks like private equity getting preferred stock + warrants in a post-spin recapitalization. That sounds both dilutive and expensive to me.

[Landlord Investor]

@Chip Oat 300K preferreds is not much (although probably par $1000 preferreds so more significant). They’re buying a bunch of common stock too which increases cushion for the preferreds.