Fortress Investment to sell $125M worth of shares

Fortress Investment Group LLC said Wednesday it aims to raise $125 million through a stock offering and use the proceeds to repay debt.

The alternative investment manager said it intends to sell Class A shares. Fortress principals will not sell any shares in connection with the offering, and expect to buy up to 10 percent of the shares sold up to $25 million, the company said. P The company expects to grant the underwriters an option to purchase up to an additional $18.75 million of Class A shares to cover over-allotments, if any.

The proceeds will be used to pay down debt under its credit agreement, and for working capital and other general corporate purposes, including investments.

Citi, JPMorgan Securities Inc., Merrill Lynch & Co. and Nomura Securities International, Inc. are serving as joint book-running managers for the offering.

Fortress common shares closed Wednesday trading down $1.11, or 17.1 percent, at $5.38, then sank an additional 66 cents, or 12.3 percent, to $4.72 in after-hours trading after the sale was announced. The stock has traded between 77 cents and $15.89 in the last 52 weeks.