Fortress Transportation and Infrastructure Investors LLC Announces the Acquisition of Transtar, LLC from United States Steel ...
June 08 2021 - 8:00AM
Fortress Transportation and Infrastructure Investors LLC
(NYSE:FTAI) (the “Company”) announced today that it has agreed to
purchase United States Steel Corporation (“USS”)’s rail operating
subsidiary, Transtar, LLC (“Transtar”) for $640 million. The
transaction is expected to close in the third quarter of 2021,
subject to customary closing conditions including receipt of
certain regulatory approvals.
Transtar is comprised of six operating freight
railroads connected to USS’s largest production facilities. Of the
six railroads, one serves Gary Works, USS’s largest manufacturing
plant and one serves Mon Valley Works, USS’s lowest cost facility
in the flat-rolled segment. FTAI and USS also agreed to enter into
an exclusive strategic rail partnership under which FTAI will
provide rail service to USS for an initial term of 15 years with
minimum volume commitments for the first five years.
“FTAI is extremely excited to enter into this
strategic rail partnership with USS as it allows us to
significantly increase our rail business by providing essential
rail services to one of the preeminent integrated steel producers
in North America under a long-term contractual arrangement. In
addition, we believe we can grow the profits of the business
through optimization of operations, addition of third-party
revenues from ancillary storage, switching and repair services and
new developments at four other rail properties included in the
transaction.
We also look forward to working with USS to
develop and implement new practices and approaches which would
improve the ESG profile of all operations,” said Joe Adams,
Chairman and CEO of FTAI.
Morgan Stanley and Barclays acted as financial
advisors to FTAI and Sidley Austin LLP acted as legal advisors to
FTAI.
Additional Information
For additional information that management
believes to be useful for investors, please refer to the
presentation posted on the Investor Relations section of the
Company’s website, www.ftandi.com, and the Company’s recent Form
8-K, when available on the Company’s website. Nothing on the
Company’s website is included or incorporated by reference
herein.
Conference Call
The Company will host a conference call on
Tuesday, June 8, 2021 at 9:00 A.M. Eastern Time. The conference
call may be accessed by dialing (877) 447-5636 (from within the
U.S.) or (615) 247-0080 (from outside of the U.S.) ten minutes
prior to the scheduled start of the call; please reference “FTAI’s
Acquisition of Transtar.” A simultaneous webcast of the conference
call will be available to the public on a listen-only basis at
www.ftandi.com.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements in this press release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements regarding (i) the agreement to purchase
Transtar and to enter into a strategic rail partnership, including
the ability to obtain all required approvals and consummate the
transaction on a timely basis or at all, (ii) Transtar’s future
performance, including its ability to grow profits, (iii) the
ability to develop and implement new practices and approaches and
improve the ESG profile of all operations and (iv) statements
regarding Transtar’s impact on FTAI's business and future
performance. These statements are based on management’s current
expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements, many of
which are beyond the Company’s control. The Company can give no
assurance that its expectations will be attained and such
differences may be material. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this
press release. For a discussion of some of the risks and important
factors that could affect such forward-looking statements, see the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, which are available on the Company’s website
(www.ftandi.com). In addition, new risks and uncertainties emerge
from time to time, and it is not possible for the Company to
predict or assess the impact of every factor that may cause its
actual results to differ from those contained in any
forward-looking statements. Such forward-looking statements speak
only as of the date of this press release. The Company expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company’s expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based. This release shall not constitute an offer
to sell or the solicitation of an offer to buy any securities.
About Fortress Transportation and
Infrastructure Investors LLC
Fortress Transportation and Infrastructure
Investors LLC owns and acquires high quality infrastructure and
equipment that is essential for the transportation of goods and
people globally. FTAI targets assets that, on a combined basis,
generate strong and stable cash flows with the potential for
earnings growth and asset appreciation. FTAI is externally managed
by an affiliate of Fortress Investment Group LLC, a leading,
diversified global investment firm.
For further information, please
contact:
Alan AndreiniInvestor RelationsFortress
Transportation and Infrastructure Investors LLC(212)
798-6128aandreini@fortress.com
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