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).