Fortress Investment Group (FIG) – Odd Lot Tender Offer – 9% potential upside

Current Price – $4.36

Offer Price – $4.25 - $4.75

Upside – potentially 9% or $40 (if the upper pricing limit is used)

Expiration date –  4 March 2016

No proration for odd lot holders

SEC Filling

 

Summary:

Fortress Investment Group LLC, is offering to purchase for cash up to $100,000,000 of its Class A shares representing Class A limited liability company interests, no par value (the “Shares”), pursuant to auction tenders at prices specified by the tendering shareholders of not greater than $4.75 per Share nor less than $4.25 per Share. At the maximum purchase price of $4.75 per Share, subject to any increase we may later make (subject to applicable law), we could purchase up to 21,052,631 Shares if the Offer is fully subscribed, which would represent approximately 9.52% of our issued and outstanding Shares as of February 3, 2016. At the minimum purchase price of $4.25 per Share, subject to any increase we may later make (subject to applicable law), we could purchase up to 23,529,411 Shares if the Offer is fully subscribed, which would represent approximately 10.64% of our issued and outstanding Shares as of February 3, 2016. 

 

No proration for odd lot holders

If you own fewer than 100 Shares in the aggregate, you properly tender and do not withdraw all of these Shares at or below the Purchase Price prior to the Expiration Date and you complete (or, for a beneficial owner, your broker, dealer, commercial bank, trust company or other nominee completes) the section entitled “Odd Lots” in the Letter of Transmittal and, if applicable, in the Notice of Guaranteed Delivery, and all conditions to the Offer are satisfied or waived, we will purchase all of your Shares without subjecting them to proration.

 

Source and amount of funds

As of September 30, 2015, we had approximately $337.1 million in cash and cash equivalents. We will fund any purchase of Shares pursuant to the Offer, including the related fees and expenses, from cash and cash equivalents on hand. The Offer is not conditioned upon the receipt of financing.

Assuming the Offer is fully subscribed, and subject to any increase we later make, we expect the aggregate purchase price for the Shares, together with all related fees and expenses, to be approximately $101,250,000.