Fortress Transportation gets $650 million unsecured bridge loan commitment for Transtar buy

By Sara Rosenberg

New York, June 8 – Fortress Transportation and Infrastructure Investors LLC has received a commitment for an up to $650 million senior unsecured bridge loan to fund its acquisition of Transtar LLC, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Morgan Stanley Senior Funding Inc. and Barclays provided the debt commitment.

The company expects to replace the bridge loan with a combination of long-term debt and preferred and/or common equity.

Under the agreement, Transtar, an operator of freight railroads, is being bought from United States Steel Corp. for $640 million.

Closing is expected in the third quarter, subject to customary conditions, including receipt of certain regulatory approvals.

Fortress Transportation is a New York-based owner and acquirer of infrastructure and equipment that is essential for the transportation of goods and people.

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