Press release
Fortress Transportation and Infrastructure Investors LLC Announces the Acquisition of Transtar, LLC from United States Steel Corporation
NEW YORK, June 08, 2021 (GLOBE NEWSWIRE) -- Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) (the “Company”) announced today that it has
About this update from Ftai Aviation Ltd.
[{"type":"text","content":"NEW YORK, June 08, 2021 (GLOBE NEWSWIRE) -- 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...