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NFE Completes Initial Step of US$2.7 Billion Notes Issuance

By MBN Staff | MBN staff - Fri, 11/29/2024 - 08:50

New Fortress Energy (NFE) announced the completion of the first step in its US$2.7 billion issuance of new senior secured notes due 2029. The transaction is aimed at refinancing existing debt and securing additional liquidity.

The transaction is being executed in two steps. The first step involved the funding of US$1.2 billion in new senior secured notes. The second step will see the issuance and private exchange of an additional US$1.5 billion in new senior secured notes, expected to close during the first week of December. The total issuance will mature in November 2029.

Through this transaction, New Fortress Energy will achieve three primary objectives:

Refinancing Existing Debt: The company will refinance US$2.4 billion of its existing bonds. This includes all bonds maturing in 2025 and more than two-thirds of its outstanding bonds maturing in 2026 and 2029.
Extending Credit Facility: The maturity of US$900 million of the company’s US$1 billion revolving credit facility will be extended to October 2027, effective once the second step of the transaction is completed.
Raising Additional Liquidity: The company will raise approximately US$325 million in gross proceeds, providing additional liquidity for its operations.

This refinancing effort, combined with an earlier US$400 million common equity offering completed in September, marks a significant milestone for New Fortress Energy. The company is enhancing its balance sheet flexibility and positioning itself for sustained future growth.

"The completion of this transaction is a crucial step in our strategic plan," said a spokesperson for New Fortress Energy. "It underscores our commitment to strengthening our financial foundation and supporting our long-term growth initiatives."

This significant refinancing transaction not only extends debt maturities but also secures additional working capital, reducing near-term debt pressure and providing the necessary funds for the company’s growth initiatives.