Fortress Investment Group Falling On Plans to Offer Over 23 Mln Shares; Proceeds Will Pay Back Executives’ Stock

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Fortress Investment Group (FIG) was falling in Wednesday’s after-market, with share sliding nearly 3% after the asset manager announced plans to sell 23.2 million shares of its Class A shares in an underwritten public offering.

FIG principals – including Peter Briger Jr., Wesley Edens, Randal Nardone and Michael Novogratz – will also sell another 5.08 million shares as part of the upcoming offering, according to a preliminary prospectus for the deal. The selling shareholders also will issue options to purchase up to 4.242 million shares to cover possible overallotments.

FIG expects to use net proceeds from its portion of the offering to buy back stock now held by its executives and other insiders.

Shares were down 2.8% at $8.14 apiece in after-hours trading, slipping 23 cents. The stock fell just over 3% during today’s regular session to close at $8.37 a share.

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