Excelerate in $184.3 million stock offering

Excelerate announced on Monday afternoon that it has started an underwritten public offering of $150 million of shares of its Class A common stock.

The firm said later during the day that it has priced the offering of 6,956,522 shares of Class A common stock at a public offering price per share of $26.50.

Also, the size of the offering increased from the previously announced $150 million of shares of common stock to $184.3 million of shares of the company’s common stock, which represents the gross proceeds of the offering before the underwriting discount and estimated offering expenses.

Additionally, Excelerate has granted the underwriters a 30-day option to purchase up to an additional 1,043,478 shares of its Class A common stock at the public offering price less the underwriting discounts and commissions.

Excelerate said the offering is expected to close on or about April 2, 2025, subject to market and other customary closing conditions.

The FSRU player said it intends to use the net proceeds from this offering, together with the expected incurrence of about $650 million aggregate principal amount of senior indebtedness, and cash on hand, to fund the previously-announced pending acquisition of New Fortress Energy’s business in Jamaica for $1.055 billion.

However, Excelerate noted the closing of the offering is not conditioned upon the closing of the pending acquisition.

Expansion

Last week, Excelerate entered into a definitive agreement with compatriot LNG player NFE to acquire the latter’s business in Jamaica.

The transaction includes the sale of NFE’s LNG import terminal in Montego Bay, offshore floating storage and regasification terminal in Old Harbour, and 150 MW combined heat and power plant in Clarendon, along with the associated infrastructure.

Excelerate operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located worldwide.

Some FSRUs are located in Finland, Brazil, Dubai, Pakistan, while one FSRU will also start serving the second FSRU-based LNG import terminal in Germany’s Wilhelmshaven later this year.

In addition to these 10 FSRUs, Excelerate also ordered one 174,000-cbm FSRU at South Korea’s HD Hyundai Heavy Industries in 2022.

The firm also aims to buy an LNG carrier this year as part of its expansion plans.