UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

FORM 8-K/A
 (Amendment No. 1)

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 1, 2022

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
(Exact name of registrant as specified in its charter)

Delaware
001-37386
32-0434238
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

1345 Avenue of the Americas, 45th Floor
New York, New York
  
 
10105
(Address of principal executive offices)
  
(Zip Code)
 
Registrant’s telephone number, including area code: (212) 798-6100
 
NOT APPLICABLE
(Former name or former address, if changed since last report)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common shares, $0.01 par value per share
FTAI
The Nasdaq Global Select Market
8.25% Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares
FTAIP
The Nasdaq Global Select Market
8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares
FTAIO
The Nasdaq Global Select Market
8.25% Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares
FTAIN
The Nasdaq Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Introductory Note

As previously reported, on August 1, 2022, Fortress Transportation and Infrastructure Investors LLC (“FTAI”  or “Company”) completed the separation (the “Separation”) of FTAI Infrastructure Inc. (“FTAI Infrastructure”) from the Company in accordance with the Separation and Distribution Agreement, dated as of August 1, 2022, between the Company and FTAI Infrastructure. Concurrently with the Separation, FTAI distributed all of the issued and outstanding shares of common stock of FTAI Infrastructure then owned by the Company to the holders of record of shares of FTAI as of 5:00 p.m., New York City time, on July 21, 2022, the record date for the distribution, on a pro rata basis.

This Amendment No. 1 to Form 8-K amends the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on August 1, 2022 (the “Original Form 8-K”). The Original Form 8-K did not include the unaudited pro forma financial information of the Company reflecting the performance of the Company’s businesses after giving effect to the Separation. This Amendment No. 1 to the Original Form 8-K is being filed to, among other matters, include such pro forma financial information as required under Item 9.01(b) of Form 8-K.

ITEM 9.01.
Financial Statements and Exhibits.

(b) The unaudited pro forma financial information of the Company, reflecting the performance of the Company’s business after giving effect to the Separation, consisting of the unaudited pro forma consolidated statements of operations for the six months ended June 30, 2022 and for the fiscal years ended December 31, 2021, December 31, 2020, and December 31, 2019 and the unaudited pro forma consolidated balance sheet as of June 30, 2022, is filed as Exhibit 99.1 to this report and incorporated herein by reference.

(d) Exhibits

Exhibit Number
Description
Unaudited pro forma consolidated financial statements of FTAI.
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Dated: August 5, 2022
  
     
   
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
     
   
/s/ Joseph P. Adams, Jr.
   
Joseph P. Adams, Jr.
   
Chief Executive Officer


Exhibit 99.1

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

On July 12, 2022, Fortress Transportation and Infrastructure Investors LLC (“FTAI”) announced that its Board of Directors approved the details and timing of the spin-off of its infrastructure business (the “Separation and Distribution”). The spin-off establishes FTAI’s infrastructure business as an independent, publicly traded company called FTAI Infrastructure Inc. (“FTAI Infrastructure”). The spin-off was effected as a pro rata distribution of all of the shares owned by FTAI of common stock of FTAI Infrastructure, a majority-owned subsidiary of FTAI, to the holders of FTAI common shares. The distribution occurred on August 1, 2022.

FTAI Infrastructure is an entity taxed as a corporation for U.S. federal income tax purposes and holds, among other things, the (i) Jefferson Terminal business, a multi-modal crude oil and refined products terminal in Beaumont, Texas, (ii) Repauno business, a deep-water port located along the Delaware River with an underground storage cavern and multiple industrial development opportunities, (iii) Long Ridge investment, an equity method investment in a multi-modal terminal located along the Ohio River with multiple industrial development opportunities, including a power plant in operation, and (iv) Transtar business, five freight railroads and one switching company that provide rail service to certain manufacturing and production facilities. FTAI Infrastructure also retained all related project-level debt of those entities. In connection with the closing of the spin-off, FTAI Infrastructure issued $300.0 million of preferred stock and warrants and $500.0 million of senior secured indebtedness, and remitted $730.3 million in proceeds, which reflects the amounts raised, primarily net of related discounts, fees and expenses, to FTAI as part of the separation. FTAI used the proceeds received from FTAI Infrastructure to repay all outstanding borrowings under its 2021 bridge loans, $200.0 million of its 6.50% senior unsecured notes due 2025, and approximately $175.0 million of the outstanding borrowings under its revolving credit facility. FTAI retained the aviation business and certain other assets, and FTAI’s remaining outstanding corporate indebtedness.

The following unaudited pro forma consolidated financial statements have been prepared to illustrate the effects of the spin-off of FTAI Infrastructure from FTAI. The unaudited pro forma consolidated statements of operations for the six months ended June 30, 2022 and the years ended December 31, 2021, December 31, 2020 and December 31, 2019 reflect the results of operations as if the Separation and Distribution had occurred on January 1, 2019. The unaudited pro forma consolidated balance sheet as of June 30, 2022 assumes that the Separation and Distribution occurred as of June 30, 2022. The unaudited pro forma consolidated financial information should be read together with the Company’s historical consolidated financial statements and accompanying notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in its annual report on Form 10-K for the fiscal year ended December 31, 2021, and in its quarterly report on Form 10-Q for the periods ended June 30, 2022.

The unaudited pro forma consolidated financial statements are presented based on information currently available, are intended for informational purposes, are not intended to represent what the Company’s consolidated statements of operations and balance sheet actually would have been had the Separation and Distribution occurred on the dates indicated above and do not reflect all actions that may be undertaken by the Company after the disposition of FTAI Infrastructure. In addition, the unaudited pro forma consolidated financial statements are not necessarily indicative of the Company’s results of operations and financial position for any future period.

The “Historical FTAI (as reported)” column in the unaudited pro forma consolidated financial statements reflects the Company’s historical consolidated financial statements for the periods presented and does not reflect any adjustments related to the Separation and Distribution or related transactions.

The information in the “Discontinued Operations” column in the unaudited pro forma consolidated statements of operations was derived from the Company’s consolidated financial statements and related accounting records for the six months ended June 30, 2022 and the fiscal years ended December 31, 2021, December 31, 2020 and December 31, 2019, and reflects the operating results of, and costs to separate, FTAI Infrastructure. Discontinued Operations does not include any allocation of general corporate overhead expenses of the Company to FTAI Infrastructure. The information in the “Discontinued Operations” column in the unaudited pro forma consolidated balance sheet was derived from the Company’s consolidated financial statements and the related accounting records as of June 30, 2022, adjusted to include certain assets and liabilities that will be transferred to FTAI Infrastructure pursuant to the Separation and Distribution agreement. Discontinued Operations does not reflect what FTAI Infrastructure’s results of operations would have been on a stand-alone basis and are not indicative of future results of operations. Beginning in the third quarter of 2022 and for all comparative periods presented, FTAI Infrastructure’s historical financial results for periods prior to the Separation and Distribution will be reflected in the Company’s consolidated financial statements as discontinued operations.

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2022
(in thousands, except share and per share amounts)

   
Historical
FTAI
(As reported)
    
Discontinued Operations
(a)
    
Pro Forma Adjustments
  
Notes
  
Pro Forma
FTAI
  
Revenues
                          
Equipment leasing revenues
    
203,755
      
-
      
-
        
203,755
  
Infrastructure revenues
    
112,016
      
(112,016
)
    
-
        
-
  
Total revenues
    
315,771
      
(112,016
)
    
-
        
203,755
  
                                   
Expenses
                                  
Operating expenses
    
192,920
      
(87,925
)
    
-
        
104,995
  
General and administrative
    
10,695
      
(2,228
)
    
-
        
8,467
  
Acquisition and transaction expenses
    
15,650
      
(10,158
)
    
-
        
5,492
  
Management fees and incentive allocation to affiliate
    
7,226
      
(7,226
)
    
462
  
(c)
    
462
  
Depreciation and amortization
    
114,923
      
(34,315
)
    
-
        
80,608
  
Asset impairment
    
123,676
      
-
      
-
        
123,676
  
Interest expense
    
104,971
      
(12,945
)
    
(20,221
)
(b)
    
71,805
  
Total expenses
    
570,061
      
(154,797
)
    
(19,759
)
      
395,505
  
                                   
Other (expense) income
                                  
Equity in (losses) earnings of unconsolidated entities
    
(37,836
)
    
38,069
      
-
        
233
  
Gain on sale of assets, net
    
79,933
      
-
      
-
        
79,933
  
Interest income
    
1,246
      
-
      
-
        
1,246
  
Other expense
    
(2,055
)
    
2,055
      
-
        
-
  
Total other (expense) income
    
41,288
      
40,124
      
-
        
81,412
  
Loss before income taxes
    
(213,002
)
    
82,905
      
19,759
        
(110,338
)
Provision for income taxes
    
6,897
      
(3,729
)
    
-
        
3,168
  
Net loss
    
(219,899
)
    
86,634
      
19,759
        
(113,506
)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries
    
(15,946
)
    
15,946
      
-
        
-
  
Less: Dividends on preferred shares
    
13,582
      
-
      
-
        
13,582
  
Net loss attributable to shareholders
    
(217,535
)
    
70,688
      
19,759
        
(127,088
)
                                   
Loss per share:
                                  
Basic
    
(2.19
)
                      
(1.28
)
Diluted
    
(2.19
)
                      
(1.28
)
                                   
Weighted average shares outstanding:
                                  
Basic
    
99,367,597
                        
99,367,597
  
Diluted
    
99,367,597
                        
99,367,597
  

See Notes to Unaudited Pro Forma Consolidated Financial Statements

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2021
(in thousands, except share and per share amounts)

   
Historical
FTAI
(As reported)
    
Discontinued Operations
(a)
    
Pro Forma Adjustments
  
Notes
  
Pro Forma
FTAI
  
Revenues
                          
Equipment leasing revenues
    
335,583
      
-
      
-
        
335,583
  
Infrastructure revenues
    
120,219
      
(120,219
)
    
-
        
-
  
Total revenues
    
455,802
      
(120,219
)
    
-
        
335,583
  
                                   
Expenses
                                  
Operating expenses
    
172,464
      
(98,541
)
    
-
        
73,923
  
General and administrative
    
17,409
      
(3,961
)
    
-
        
13,448
  
Acquisition and transaction expenses
    
21,941
      
(4,030
)
    
-
        
17,911
  
Management fees and incentive allocation to affiliate
    
16,322
      
(15,638
)
    
239
  
(c)
    
923
  
Depreciation and amortization
    
201,756
      
(54,016
)
    
-
        
147,740
  
Asset impairment
    
10,463
      
-
      
-
        
10,463
  
Interest expense
    
171,036
      
(16,019
)
    
(14,267
)
(b)
    
140,750
  
Total expenses
    
611,391
      
(192,205
)
    
(14,028
)
      
405,158
  
                                   
Other (expense) income
                                  
Equity in (losses) earnings of unconsolidated entities
    
(12,734
)
    
11,331
      
-
        
(1,403
)
Gain on sale of assets, net
    
49,031
      
(16
)
    
-
        
49,015
  
Loss on extinguishment of debt
    
(3,254
)
    
-
      
-
        
(3,254
)
Interest income
    
1,711
      
(318
)
    
-
        
1,393
  
Other expense
    
(10,928
)
    
9,248
      
-
        
(1,680
)
Total other income
    
23,826
      
20,245
      
-
        
44,071
  
Loss before income taxes
    
(131,763
)
    
92,231
      
14,028
        
(25,504
)
(Benefit from) provision for income taxes
    
(1,057
)
    
4,183
      
-
        
3,126
  
Net loss
    
(130,706
)
    
88,048
      
14,028
        
(28,630
)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries
    
(26,472
)
    
26,472
      
-
        
-
  
Less: Dividends on preferred shares
    
24,758
      
-
      
-
        
24,758
  
Net loss attributable to shareholders
    
(128,992
)
    
61,576
      
14,028
        
(53,388
)
                                   
Loss per share:
                                  
Basic
    
(1.43
)
                      
(0.59
)
Diluted
    
(1.43
)
                      
(0.59
)
                                   
Weighted average shares outstanding:
                                  
Basic
    
89,922,088
                        
89,922,088
  
Diluted
    
89,922,088
                        
89,922,088
  

See Notes to Unaudited Pro Forma Consolidated Financial Statements
 
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2020
(in thousands, except share and per share amounts)

   
Historical
FTAI
(As reported)
    
Discontinued Operations
(a)
    
Pro Forma Adjustments
  
Notes
  
Pro Forma
FTAI
  
Revenues
                          
Equipment leasing revenues
    
297,934
      
-
      
-
        
297,934
  
Infrastructure revenues
    
68,562
      
(68,562
)
    
-
        
-
  
Total revenues
    
366,496
      
(68,562
)
    
-
        
297,934
  
                                   
Expenses
                                  
Operating expenses
    
109,512
      
(69,391
)
    
-
        
40,121
  
General and administrative
    
18,159
      
(4,053
)
    
-
        
14,106
  
Acquisition and transaction expenses
    
9,868
      
-
      
-
        
9,868
  
Management fees and incentive allocation to affiliate
    
18,519
      
(13,073
)
    
-
        
5,446
  
Depreciation and amortization
    
172,400
      
(31,114
)
    
-
        
141,286
  
Asset impairment
    
33,978
      
-
      
-
        
33,978
  
Interest expense
    
98,206
      
(10,764
)
    
(13,832
)
(b)
    
73,610
  
Total expenses
    
460,642
      
(128,395
)
    
(13,832
)
      
318,415
  
                                   
Other (expense) income
                                  
Equity in losses of unconsolidated entities
    
(5,039
)
    
3,107
      
-
        
(1,932
)
Loss on sale of assets, net
    
(308
)
    
8
      
-
        
(300
)
Loss on extinguishment of debt
    
(11,667
)
    
4,724
      
-
        
(6,943
)
Interest income
    
162
      
(22
)
    
-
        
140
  
Other income
    
70
      
(70
)
    
-
        
-
  
Total other expense
    
(16,782
)
    
7,747
      
-
        
(9,035
)
Loss from continuing operations before income taxes
    
(110,928
)
    
67,580
      
13,832
        
(29,516
)
Benefit from income taxes
    
(5,905
)
    
1,562


-
        
(4,343
)
Net loss from continuing operations
    
(105,023
)
    
66,018
      
13,832
        
(25,173
)
Net income from discontinued operations, net of income taxes
    
1,331
      
-
      
-
        
1,331
  
Net loss
    
(103,692
)
    
66,018
      
13,832
        
(23,842
)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries from continuing operations
    
(16,522
)
    
16,522
      
-
        
-
  
Less: Dividends on preferred shares
    
17,869
      
-
      
-
        
17,869
  
Net loss attributable to shareholders
    
(105,039
)
    
49,496
      
13,832
        
(41,711
)
                                   
Loss per share:
                                  
Basic
                                  
Continuing operations
    
(1.24
)
                      
(0.50
)
Discontinued operations
    
0.02
                        
0.02
  
Diluted
                                  
Continuing operations
    
(1.24
)
                      
(0.50
)
Discontinued operations
    
0.02
                        
0.02
  
Weighted average shares outstanding:
                                  
Basic
    
86,015,702
                        
86,015,702
  
Diluted
    
86,015,702
                        
86,015,702
  

See Notes to Unaudited Pro Forma Consolidated Financial Statements

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2019
(in thousands, except share and per share amounts)
 
   
Historical
FTAI
(As reported)
    
Discontinued Operations
(a)
    
Pro Forma Adjustments
  
Notes
  
Pro Forma
FTAI
  
Revenues
                          
Equipment leasing revenues
    
349,322
      
-
      
-
        
349,322
  
Infrastructure revenues
    
229,452
      
(229,452
)
    
-
        
-
  
Total revenues
    
578,774
      
(229,452
)
    
-
        
349,322
  
                                   
Expenses
                                  
Operating expenses
    
291,572
      
(260,909
)
    
-
        
30,663
  
General and administrative
    
16,905
      
(3,747
)
    
-
        
13,158
  
Acquisition and transaction expenses
    
17,623
      
-
      
-
        
17,623
  
Management fees and incentive allocation to affiliate
    
36,059
      
(16,541
)
    
-
        
19,518
  
Depreciation and amortization
    
169,023
      
(33,128
)
    
-
        
135,895
  
Asset impairment
    
4,726
      
(4,726
)
    
-
        
-
  
Interest expense
    
95,585
      
(17,907
)
    
(13,775
)
(b)
    
63,903
  
Total expenses
    
631,493
      
(336,958
)
    
(13,775
)
      
280,760
  
                                   
Other (expense) income
                                  
Equity in losses of unconsolidated entities
    
(2,375
)
    
546
      
-
        
(1,829
)
Gain on sale of assets, net
    
203,250
      
(121,296
)
    
-
        
81,954
  
Interest income
    
531
      
(414
)
    
-
        
117
  
Other income
    
3,445
      
(2,443
)
    
-
        
1,002
  
Total other income
    
204,851
      
(123,607
)
    
-
        
81,244
  
Income from continuing operations before income taxes
    
152,132
      
(16,101
)
    
13,775
        
149,806
  
Provision for income taxes
    
17,810
      
(12,779
)
    
-
        
5,031
  
Net income from continuing operations
    
134,322
      
(3,322
)
    
13,775
        
144,775
  
Net income from discontinued operations, net of income taxes
    
73,462
      
-
                
73,462
  
Net income
    
207,784
      
(3,322
)
    
13,775
        
218,237
  
Less: Net (loss) income attributable to non-controlling interests in consolidated subsidiaries:
                                  
Continuing operations
    
(17,571
)
    
17,571
      
-
        
-
  
Discontinued operations
    
247
      
-
      
-
        
247
  
Less: Dividends on preferred shares
    
1,838
      
-
      
-
        
1,838
  
Net income attributable to shareholders
    
223,270
      
(20,893
)
    
13,775
        
216,152
  
                                   
Earnings per share:
                                  
Basic
                                  
Continuing operations
    
1.74
                        
1.66
  
Discontinued operations
    
0.85
                        
0.85
  
Diluted
                                  
Continuing operations
    
1.74
                        
1.66
  
Discontinued operations
    
0.85
                        
0.85
  
Weighted average shares outstanding:
                                  
Basic
    
85,992,019
                        
85,992,019
  
Diluted
    
86,029,363
                        
86,029,363
  

See Notes to Unaudited Pro Forma Consolidated Financial Statements

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2022
(in thousands, except share and per share amounts)

   
Historical
FTAI
(As reported)
    
Discontinued Operations
(a)
    
Pro Forma
Adjustments
  
Notes
    
Pro Forma
FTAI
  
Assets
                          
Cash and cash equivalents
    
118,854
      
(68,469
)
    
-
        
50,385
  
Restricted cash
    
177,951
      
(177,951
)
    
-
        
-
  
Accounts receivable, net
    
166,562
      
(88,573
)
    
-
        
77,989
  
Leasing equipment, net
    
1,844,095
      
(35,459
)
    
-
        
1,808,636
  
Operating lease right-of-use assets, net
    
73,549
      
(70,148
)
    
-
        
3,401
  
Property, plant, and equipment, net
    
1,642,536
      
(1,598,982
)
    
-
        
43,554
  
Investments
    
99,543
      
(76,905
)
    
-
        
22,638
  
Intangible assets, net
    
95,845
      
(63,977
)
    
-
        
31,868
  
Goodwill
    
262,819
      
(262,819
)
    
-
        
-
  
Other assets
    
400,394
      
(116,946
)
    
-
        
283,448
  
Total assets
    
4,882,148
      
(2,560,229
)
    
-
        
2,321,919
  
                                   
Liabilities
                                  
Accounts payable and accrued liabilities
    
253,207
      
(162,096
)
    
(5,623
)
(c)
    
85,488
  
Debt, net
    
3,497,566
      
(729,410
)
    
(711,243
)
(c)
    
2,056,913
  
Maintenance deposits
    
58,553
      
-
      
-
        
58,553
  
Security deposits
    
27,761
      
-
      
-
        
27,761
  
Operating lease liabilities
    
72,140
      
(69,138
)
    
-
        
3,002
  
Other liabilities
    
283,650
      
(255,392
)
    
-
        
28,258
  
Total liabilities
    
4,192,877
      
(1,216,036
)
    
(716,866
)
      
2,259,975
  
                                   
Equity
                                  
Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 99,200,196 shares issued and outstanding as of June 30, 2022)
    
992
      
-
      
-
        
992
  
Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 13,320,000 shares issued and outstanding as of June 30, 2022)
    
133
      
-
      
-
        
133
  
Additional paid in capital
    
1,332,968
      
(1,652,670
)
    
730,340
  
(c)
    
410,638
  
Accumulated deficit    
(336,345
)
    
-
      
(13,474
)
(d)
    
(349,819
)
Accumulated other comprehensive loss
    
(298,874
)
    
298,874
      
-
        
-
  
Shareholders’ equity
    
698,874
      
(1,353,796
)
    
716,866
        
61,944
  
Non-controlling interest in equity of consolidated subsidiaries
    
(9,603
)
    
9,603
      
-
        
-
  
Total equity
    
689,271
      
(1,344,193
)
    
716,866
        
61,944
  
Total liabilities and equity
    
4,882,148
      
(2,560,229
)
    
-
        
2,321,919
  

See Notes to Unaudited Pro Forma Consolidated Financial Statements

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

Description of Pro Forma Adjustments

The unaudited pro forma consolidated statements of operations for the six months ended June 30, 2022 and the years ended December 31,
2021, December 31, 2020 and December 31, 2019, and the unaudited pro forma consolidated balance sheet as of June 30, 2022 include the following adjustments:


 (a)
Reflects the discontinued operations of FTAI Infrastructure, including the associated assets, liabilities, equity and results of operations and the non-recurring costs, primarily consisting of professional fees, that are directly related to the Separation and Distribution. Certain general corporate overhead expenses that were not specifically related to FTAI Infrastructure were excluded, as they did not meet the discontinued operations criteria.


(b)
Reflects the reduction in interest expense of $20.2 million, $14.3 million, $13.8 million, and $13.8 million to give effect to the estimated repayment of debt described in (c) below for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020 and 2019, respectively.


(c)
Reflects the cash distribution from FTAI Infrastructure to FTAI in connection with the Separation and Distribution. FTAI Infrastructure has $300.0 million of preferred stock and $500.0 million aggregate principal amount of indebtedness. The Company received a dividend of $730.3 million in cash, the proceeds of the preferred stock and indebtedness, which reflects the amounts raised, primarily net of related discounts, fees and expenses. The Company used the proceeds received from FTAI Infrastructure to repay certain of FTAI’s outstanding debt and related premiums and accrued interest, and wrote off unamortized deferred financing costs of $13.5 million of the related debt facilities. The repayment of debt included all outstanding borrowings under its 2021 bridge loans, $200.0 million of its 6.50% senior unsecured notes due 2025, and approximately $175.0 million of its outstanding borrowings under its revolving credit facility. The write-off of deferred financing costs has been reflected as an adjustment to retained earnings. The adjustment also reflects an increase in management fees driven by an increase in total equity as a result of the debt repayment, in accordance with the management agreement.


(d)
Reflects the impact of the Company’s shareholders’ equity from the pro forma adjustment described in note (c).