Fortress Transportation & Infrastructure Investors, a publicly traded company (NYSE:FTAI), is a global corporation that owns and acquires high quality infrastructure and equipment. FTAI is expanding the storage and pipeline connectivity capacity at Jefferson Terminal, its crude oil and refined products logistics facility at the Port of Beaumont, Texas.
Jefferson Terminal is strategically located in the heart of the Gulf Coast, the largest market in the United States for crude oil and petroleum products, containing over 50% of the country’s refining capacity. Connected by rail, marine, highway and pipelines, Jefferson Terminal is an essential component of the supply chain for some of North America’s largest producers and refineries. The expansion/growth plan will further strengthen Jefferson Terminal’s position with its key customers and put them in a strong position to capture the growth across crude and petroleum exports and storage.
High Quality Borrower
Specializing in investing and acquiring high quality infrastructure projects, FTAI is a fully owned subsidiary of the Fortress Investment Group LLC (“Fortress”), which has acquired over $17 billion in transportation-related assets since 2002. The existing mix of assets owned by Fortress provides significant cash flows as well as organic growth potential through identified projects. FTAI currently invests in aviation, energy, intermodal transport and rail sectors and targets assets that generate strong and stable cash flows with the potential for earnings growth and asset appreciation. As of September 30, 2019, FTAI had total consolidated assets of $3.1 billion and total equity capital of $1.1 billion.
Attractive Capital Stack & Strong Collateral
- 57% of the capital stack will be financed by equity.
- The EB-5 investors will be a first lien position along with other senior debt.
Strong Government Support
- Jefferson Terminal is a public-private partnership between the Port of Beaumont Navigation District of Jefferson County, Texas and Jefferson Energy Companies.
- Port of Beaumont issued tax-exempt bonds to recapitalize the project development.
Stable Cash Flow & Strong Economic Outlook
- Jefferson Terminal’s customers include ExxonMobil and Motiva, two of the world’s largest refineries, which provide stable income to support company growth.
- Strong growth of crude and petroleum exports have attracted more than $20 billion of capital investments in the region to increase refinery capacity.
Key Project Information
PROJECT BUDGET: $1.29 billion | EQUITY: $737 million (57.13%) | EB-5 LOAN AMOUNT: Tranche I: $35.1 million
Tranche II: $35.1 million | EB-5 LOAN LESS THAN 10% OF TOTAL CAPITAL STACK | COLLATERAL: SHARED FIRST LIEN ON PROJECT ASSETS | EB-5 LOAN TERM: 5 YEARS WITH TWO ONE-YEAR EXTENSION OPTIONS | MINIMUM INVESTMENT AMOUNT: $900,000 | EXPECTED COMPLETION: Q4 2020