(Energy Analytics Institute, 26.Nov.2024) — New Fortress Energy Inc. completed the first of two steps of its $2.7bn issuance of new senior secured notes due Nov. 2029.
The first step completed was the funding of $1.2bn new senior secured notes, New Fortress said 26 Nov. 2024 in an official statement.
The second step will include the issuance and private exchange of $1.5bn in new senior secured notes expected to close in the first week of Dec. 2024.
New Fortress’ initial Fast LNG (FLNG) asset located offshore Altamira, Mexico shipped out its inaugural LNG cargo on 30 Sep. 2024. The FLNG asset sources feedgas from the Eagle Ford and has a processing capacity of 1.4 million tonnes per annum (mtpa).
As a result of the transaction, New Fortress will achieve three key objectives, according to the company: 1) refinancing $2.4bn of existing bonds, including all bonds maturing in 2025 and more than two-thirds of our outstanding bonds maturing in 2026 and 2029, 2) extending the maturity of $900mn of the $1bn revolving credit facility to Oct. 2027 (effective once the second step of the transaction is completed), and 3) raising $325mn in gross proceeds to provide additional liquidity.
The transaction, in combination with $400mn from a common equity offering completed in Sep. 2024, marks an important milestone for New Fortress as it looks to strengthen its balance sheet while positioning the company for future sustained growth.
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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.
