FTAI Infrastructure (NASDAQ:FIP) Plans Refinancing of Existing Loans and Potential Transaction with GCM

FTAI Infrastructure Inc. (FIP), a Delaware-based company, recently disclosed plans for refinancing existing loans and engaging in a potential transaction with LIF LR Holdings, LLC, an affiliate of GCM Grosvenor L.P. FIP made this announcement through a Form 8-K filing with the Securities and Exchange Commission on January 8, 2025.

According to the filing, a subsidiary of Long Ridge Energy & Power LLC, an equity method investee within FIP’s Power and Gas segment, intends to market the refinancing of its existing loans with proceeds from a new senior secured term loan. Additionally, Long Ridge plans to market the refinancing with proceeds from new secured debt financing, targeting annual revenues of approximately $223 million and Adjusted EBITDA of around $160 million post-transaction.

The plan includes using the net proceeds from the new secured financing to refinance outstanding loans, cover costs related to terminating specific electricity sale derivative contracts, and fund various reserves and transaction fees. These projections are contingent on several assumptions related to Long Ridge’s operations and market conditions.

Moreover, FIP is in discussions with GCM regarding a Potential Transaction to purchase all of GCM’s interests in Long Ridge and LRWV for about $200 million. The consideration for this transaction is anticipated to be in the form of equity-linked interests in FIP. However, the outcome of these discussions and the likelihood of a successful transaction remain uncertain.

The report also included cautionary language concerning forward-looking statements, highlighting the risks and uncertainties associated with the Potential Transaction, the New Secured Financing, and various market factors that could impact future results.

FIP stressed that the forward-looking statements are subject to uncertainties and factors that may lead to actual results differing significantly from those projected. Interested parties were advised to review FIP’s filings with the SEC for more information on potential risk factors.

The Form 8-K filing did not provide forward-looking guidance for U.S. GAAP reported financial measures, citing uncertainties surrounding significant items like derivative instruments and operational expenses that could influence reported results.

The filing concluded with the required Signature section, signifying that FIP’s Chief Executive Officer and President, Kenneth J. Nicholson, had duly authorized the report on behalf of the company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FTAI Infrastructure’s 8K filing here.

FTAI Infrastructure Company Profile

FTAI Infrastructure Inc focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition.