FTAI subsidiary to market $400 million financing

FTAI Infrastructure Inc. (NASDAQ:FIP), a company specializing in railroad line-haul operations with a market capitalization of $385 million, announced today that its wholly owned subsidiary, Delaware River Partners LLC ("Repauno"), is planning to market a $400 million financing package. This package is expected to comprise tax-exempt bonds and a term loan. According to InvestingPro data, the company already operates with a significant debt burden, with a debt-to-equity ratio of 8.23x.

The proceeds from the financing are intended for several key uses. Repauno aims to fund the construction of its Phase 2 expansion, repay certain debts, contribute to reserve accounts, and cover transaction fees and expenses related to the financing. InvestingPro analysis reveals that the company’s current ratio stands at 0.88, indicating that short-term obligations exceed liquid assets, which may explain the urgency for additional financing.

FTAI has invested approximately $317 million in Repauno as of March 31, 2025. With the completion of Phase 2, Repauno is targeting annual revenues of up to $130 million and an Adjusted EBITDA of up to $100 million. These projections are based on increasing throughput to 96,000 barrels per day and charging approximately $3.70 per barrel for handling and storage while incurring operating expenses of around $30 million. The company’s current EBITDA stands at $81.77 million, while analysts anticipate sales growth in the current year, as highlighted in InvestingPro’s comprehensive analysis (13 additional ProTips available with subscription).

However, these targets are subject to various assumptions and actual results may differ materially. FTAI and Repauno have cautioned that they cannot provide forward-looking guidance for U.S. GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures due to the unpredictability of certain significant items.

The forward-looking statements in this press release involve risks and uncertainties, including the ability to complete the financing on the terms assumed, or at all, and Repauno’s ability to meet its obligations under the financing agreements. These uncertainties also encompass potential changes in the cost of LPG products, tax laws, regulations, competitive developments, and other factors that could affect the company’s results.

This news is based on a press release statement and reflects no endorsement of claims. It is intended to provide investors with the latest information regarding FTAI Infrastructure Inc.’s financial activities and strategic moves. The stock has experienced significant volatility, with a 63.74% decline over the past six months. Investors seeking deeper insights can access the full Pro Research Report, available exclusively on InvestingPro, which provides comprehensive analysis of FIP’s financial health, valuation metrics, and growth prospects.

In other recent news, FTAI Infrastructure Inc. reported its fourth-quarter 2024 earnings, which fell short of analysts’ expectations. The company posted an earnings per share of -$1.24, missing the forecasted -$0.36, and revenue came in at $80.76 million against a projected $96.43 million. Despite these results, Citizens JMP maintained its Market Outperform rating for the company, with a price target of $12.00, citing confidence in FTAI Infrastructure’s long-term growth potential. Additionally, S&P Global Ratings upgraded the company’s outlook to stable from negative, based on expected deleveraging following FTAI Infrastructure’s acquisition of Long Ridge Energy & Power LLC.

The acquisition of Long Ridge is anticipated to drive substantial EBITDA growth, although it has also led to a significant increase in debt. Meanwhile, FTAI Infrastructure has appointed Carl Russell Fletcher IV as its new Chief Financial Officer and Chief Accounting Officer, bringing over 18 years of experience in energy, power, and infrastructure investments. The company is also undertaking strategic initiatives, including new contracts at its Jefferson Terminal and Repauno segments, which are expected to boost EBITDA in the coming years.

Looking ahead, FTAI Infrastructure projects an EBITDA potential of over $400 million for 2025, driven by strong demand in the power and transportation sectors. The company’s strategic expansions and refinancing efforts are aimed at enhancing financial flexibility and supporting growth. Despite the current high leverage, analysts remain optimistic about FTAI Infrastructure’s future prospects, highlighting the anticipated milestones and transformative growth opportunities in 2025.

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