FTAI prices $300M in private bond offering

FTAI Infrastructure Inc. (NASDAQ:FIP), currently valued at $602.5 million in market capitalization, has successfully priced its previously announced private offering, according to an 8-K filing with the SEC. The offering consists of New Jersey Economic Development Authority Dock and Wharf Facility Revenue Bonds, Series 2025, with an aggregate principal amount of $300 million. According to InvestingPro data, the company already carries a substantial debt burden of $2.82 billion, making this offering particularly significant for investors monitoring the company’s financial health.

The bonds are divided into two tranches: $150 million maturing on January 1, 2035, with a 6.375% interest rate, and another $150 million maturing on January 1, 2045, at a 6.625% fixed interest rate. The closing of the offering is expected on May 28, 2025, subject to standard closing conditions. InvestingPro analysis reveals concerning metrics about the company’s financial position, with a current ratio of 0.86 indicating potential liquidity challenges. For comprehensive insights into FIP’s debt sustainability and 15+ additional ProTips, consider exploring InvestingPro’s detailed research report.

The bonds, special limited obligations of the issuer, are payable solely from the revenues or other receipts, funds, or moneys pledged under the indenture and the secured obligation documents. They will not constitute a debt or pledge of the State of New Jersey’s faith, credit, or taxing power.

Additionally, Repauno, a subsidiary of FTAI Infrastructure, intends to enter into a Senior Secured Credit Agreement to provide a term loan facility of $106 million concurrently with the bond closing. This loan will refinance existing obligations and support general corporate purposes.

Interest on the term loan will be at Repauno’s option, either 8.50% per annum payable in cash or 9.50% per annum payable in kind. The initial maturity is set for 18 months from the closing date, with an option for an 18-month extension.

The Series 2025 Bonds are offered only to "qualified institutional buyers" or institutional "accredited investors." The offering is made solely by a limited offering memorandum and related supplements.

The information in the SEC filing is a forward-looking statement and is subject to risks and uncertainties that could cause actual results to differ materially from those projected. This includes risks related to the conditions of the offering’s closing, anticipated benefits of financed projects, and Repauno’s ability to meet its obligations under the definitive documents for the offering. With a debt-to-equity ratio of 5.93x and EBITDA of $93.13 million for the last twelve months, InvestingPro’s comprehensive analysis suggests the company may face challenges in managing its debt obligations. Access the full Pro Research Report for detailed risk assessment and expert analysis of FIP’s financial position.

The 8-K filing indicates that the terms of the Senior Secured Credit Agreement are still being negotiated and are not finalized. There is no assurance that the agreement will be consummated on the described terms or at all.

In other recent news, FTAI Infrastructure LLC reported its first-quarter 2025 earnings, revealing a notable earnings per share (EPS) of $0.89, significantly surpassing the forecasted -$0.36. However, the company’s revenue fell short of expectations, coming in at $96.2 million compared to the projected $101.87 million. Despite the revenue miss, the company recorded a non-cash gain of $120 million, contributing to a positive market sentiment. FTAI Infrastructure’s adjusted EBITDA increased to $35.2 million, marking a 21% rise from the previous quarter. The company anticipates a transformational year, with Long Ridge expected to achieve a $160 million annual run-rate EBITDA by mid-year. Additionally, FTAI Infrastructure is exploring growth opportunities, including third-party railroad and data center projects at Long Ridge. The company faces potential risks, such as global trade uncertainties and regulatory reviews, but continues to focus on its strategic objectives. Analyst discussions highlighted ongoing developments at Repauno and potential impacts of tariffs on business operations.

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