Item 1.01. Entry
into a Material Definitive Agreement.
Indenture
On July 28, 2020, Fortress Transportation and Infrastructure Investors LLC (the “Company”) closed its previously announced private offering of $400.0
million (upsized from $300.0 million) aggregate principal amount of 9.75% senior unsecured notes due 2027 (the “Notes”). The Notes were issued pursuant to an indenture, dated as of July 28, 2020 (the “Indenture”), between the Company and U.S. Bank
National Association, as trustee. The Company is filing the Indenture as Exhibit 4.1 to this Current Report on Form 8-K.
The Notes are senior unsecured obligations of the Company and rank equal in right of payment with all existing and future senior unsecured indebtedness of
the Company and senior in right of payment to all of the existing and future subordinated indebtedness of the Company. The Notes are effectively subordinated to all existing and future secured obligations of the Company to the extent of the value of
the assets securing such obligations, and are structurally subordinated to the liabilities and preferred stock of each subsidiary of the Company that does not guarantee the Notes. The Notes are not guaranteed initially by any of the Company’s
subsidiaries or any third party.
The Notes will bear interest at a rate of 9.750% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on
February 1, 2021, to persons who are registered holders of the Notes on the immediately preceding January 15 and July 15, respectively.
The Indenture limits the ability of the Company and its restricted subsidiaries to, among other things, incur indebtedness, encumber their assets, make
restricted payments, create dividend restrictions and other payment restrictions that affect the Company’s restricted subsidiaries, permit restricted subsidiaries to incur or guarantee certain indebtedness, enter into transactions with affiliates and
sell assets, in each case subject to certain qualifications set forth in the Indenture.
In the event of a Change of Control (as defined in the Indenture), each holder of the Notes will have the right to require the Company to repurchase all or
any part of that holder’s Notes at a purchase price of 101% of the principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase.
The Notes will mature on August 1, 2027. Prior to August 1, 2023, the Company may redeem some or all of the Notes at a redemption price equal to 100% of
the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, plus a “make-whole” premium. On or after August 1, 2023, the Company may redeem some or all of the Notes at
any time at declining redemption prices (in each case expressed as a percentage of the principal amount on the redemption date) equal to (i) 104.875% beginning on August 1, 2023, (ii) 102.438% beginning on August 1, 2024 and (iii) 100.000% beginning
on August 1, 2025 and thereafter, plus, in each case, accrued and unpaid interest, if any, to, but not including, the applicable redemption date. In addition, at any time on or prior to August 1, 2023, the Company may redeem up to 40% of the
aggregate principal amount of the Notes using net proceeds from certain equity offerings at a redemption price equal to 109.750% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the
applicable redemption date.
The foregoing description of the Indenture does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text
of the Indenture, a copy of which is attached hereto as Exhibit 4.1 and incorporated herein by reference.
The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and, unless so registered, may not be
offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The Company intends to use the net proceeds from the offering to repay the $220.0 million of outstanding borrowings under its Revolving Credit Facility,
and to use the remaining net proceeds for general corporate purposes, which may include the repurchase or redemption of its outstanding 6.75% Senior Notes due 2022 and the funding of future acquisitions and investments, including aviation
investments. Any future repurchase or redemption of outstanding 2022 Notes will depend on various factors. There can be no assurance that the Company makes any such repurchases or redemptions and the Company is not required to do so.