FTAI Infrastructure plans $270 million private notes offering to fund DRUbit LLC acquisition

FTAI Infrastructure Inc. (NASDAQ:FIP) announced Friday that its Jefferson Terminal segment intends to launch a private offering of up to $270 million in aggregate principal amount of notes. The proceeds are expected to fund the acquisition of DRUbit LLC, which was previously disclosed in a filing on September 28, 2026.

According to the company’s statement, the acquisition of DRUbit LLC from an affiliate of US Development Group LLC is based on an enterprise value of $255 million. Jefferson plans to combine the acquired assets into its bond borrower group and expects the new debt to finance both the acquisition and related fees, including the repayment of approximately $255 million of existing debt.

FTAI Infrastructure reported that the acquired assets are expected to contribute about $50 million in annual Adjusted EBITDA under take-or-pay contracts. Jefferson projects that, based on its contracted business, the acquisition will increase its annual Adjusted EBITDA to approximately $100 million over the next 12 months.The stock has declined 53% over the past year, currently trading at $2.52 with a market capitalization of $297.82 million. For deeper insights into FIP’s financial outlook and strategic positioning, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.

For the six months ended June 30, 2026, Jefferson recorded a net loss of about $52.2 million and Adjusted EBITDA of $19.2 million. On an annualized and pro forma basis, including the effect of the Southern Star Pipeline minimum revenue commitment, Adjusted EBITDA was approximately $41 million for the same period.

The private offering is expected to be made to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S. Jefferson intends to use the net proceeds to finance the acquisition, which includes the Port Arthur Terminal in Texas and a 50% interest in the Diluent Recovery Unit in Hardisty, Alberta, as well as to pay related transaction fees and expenses.

The company stated that completion of the financing is subject to market and other conditions, and there is no assurance that it will be completed or completed on the proposed terms.

This article is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, FTAI Infrastructure reported a wider-than-expected loss for the second quarter of 2026, with adjusted earnings per share at -$1.41, compared to analysts’ forecast of a -$0.42 loss. Revenue for the quarter was $186.76 million, falling short of the anticipated $193.05 million. Despite these figures, the company highlighted record performance in its railroad and terminal businesses and expressed a strong outlook for asset sales and debt reduction. Additionally, Citizens reiterated a Market Outperform rating for FTAI Infrastructure, maintaining a $10.00 price target. The firm pointed to the anticipated closure of the Long Ridge power assets sale as a key near-term catalyst. This transaction is expected to reduce total debt by $1.5 billion, although it will result in the loss of approximately $100 million in annual EBITDA. These developments reflect the company’s ongoing efforts to strengthen its financial position and operational capabilities.