Business Context and Reporting Period
This Form 8-K was filed by Fortress Transportation & Infrastructure Investors LLC (FTAI) on January 17, 2020. The report details a financing event involving Jefferson Energy companies, a subsidiary of FTAI, in partnership with The Port of Beaumont Navigation District of Jefferson County, Texas.
Key Financial Metrics
- Bond Offering: Intention to offer Series 2020 Bonds with an aggregate principal amount of approximately $265,805,000.
- Bond Structure: Approximately $186,385,000 in Series 2020A Dock and Wharf Facility Revenue Bonds and $79,420,000 in Series 2020B Taxable Facility Revenue Bonds.
- Projected Revenue: Expected annual run-rate revenues of $130 million to $150 million within 12 months of project completion.
- Projected EBITDA: Expected annual run-rate EBITDA of $70 million to $80 million within 12 months of project completion.
- Capacity Assumptions: Projections assume 4.3 million barrels of storage capacity with an 80-85% utilization rate.
- Historical Financials: The filing text does not provide current revenue, profit, cash flow, or debt figures for FTAI or Jefferson Energy.
Material Changes and Use of Proceeds
The filing does not report material changes to prior period financial results. Instead, it outlines the intended use of net proceeds from the bond offering:
- Refund, redeem, and defease certain existing indebtedness.
- Pay for or reimburse costs related to the development, construction, and acquisition of facilities.
- Fund reserve and funded interest accounts related to the Series 2020 Bonds.
- Reimburse costs of issuance for the Series 2020 Bonds.
Guidance, Outlook, and Risks
Outlook: Project completion is currently expected to occur by the fourth quarter of 2020. The projected financial performance is based on pricing substantially comparable to current market rates and does not account for additional projects FTAI may pursue.
Risks and Contingencies:
- Non-Recourse Nature: The Series 2020 Bonds are special, limited obligations secured solely by the trust estate and collateral. They do not constitute indebtedness of the Port of Beaumont Navigation District, the State of Texas, or Jefferson County, and no full faith and credit or taxing power is pledged.
- Forward-Looking Statements: Actual results may differ materially from projections due to various factors, including those detailed in FTAI's Form 10-K and 10-Q filings.
- Investor Eligibility: The offering is restricted to "qualified institutional buyers" under Rule 144A and "institutional accredited investors."
Key Facts for Investor Verification
- Verify the final terms and closing date of the $265.8 million Series 2020 Bonds offering.
- Confirm the actual completion date of the facilities, currently targeted for Q4 2020.
- Monitor actual storage utilization rates and pricing against the assumed 80-85% utilization and current market rates.
- Review FTAI's latest 10-K and 10-Q filings for comprehensive risk factors and consolidated financial data not included in this 8-K.