Investment management firm Fortress Investment Group LLC (FIG) said Wednesday that it executed an amendment to a restated credit agreement with a group of banks, which allows the company to repurchase outstanding loans made under the agreement, subject to certain conditions.
In a filing with the U.S. Securities and Exchange Commission, the company said that its amendments on June 11 to the credit agreement with the banks, including Bank of America Corp. (BAC) and Citigroup Inc. (C), allows it to make investments in its own funds in any amount, provided that investments in funds created after June 11, 2009 in excess of 1.5% of such fund's aggregate called capital may not be deducted from free cash flow.
The amendments to the credit agreement also expands the definition of "Permitted Fund Termination" and revises certain financial covenants, by modifying the definition of free cash flow and reducing the percentage of free cash flow that must be applied to prepay outstanding term loans from 75% to 50% if the amount of outstanding commitments and loans do not exceed $315 million, the amount of outstanding loans do not exceed $300 million, and the consolidated leverage ratio does not exceed 2.0 to 1.0.
In early May, Fortress Investment Group reported a net loss for the first quarter that widened from the year-ago period on lower revenue and an almost $3 billion drop in assets managed by the company. The company's net loss for the quarter widened to $287 million from $277.2 million in the year-ago period. Revenue for the quarter declined to $122.3 million from $200.9 million in the same quarter of 2008.
At the end of the first quarter, the company's assets under management were $26.54 billion, compared to $29.45 billion at the beginning of the quarter.
FIG closed Wednesday's regular trading session at $3.59, down $0.29 or 7.47% on a volume of 3.90 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.