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FTAI Infrastructure Inc. says it plans to buy DRUbit LLC for $255 million and raise $270 million to pay for it.

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Neutral

FTAI Infrastructure expects the acquired assets and contracted business to more than double Jefferson's yearly earnings before interest, taxes, and some costs. But the plan adds borrowing at an assumed 10% interest rate, and its targets and financing are uncertain, so the story leaves FIP's outlook balanced.

FIP · FTAI Infrastructure Inc.

AI read · Neutral

The AI's read

The purchased assets could add about $50 million in yearly earnings before interest, taxes, and certain costs through customer contracts. The borrowing needed to fund them is large, and Jefferson assumes a 10% interest rate. Its goals also depend on winning more customer contracts, and the financing may not close. These gains and risks leave FIP's outlook balanced.

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