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Excelerate and NFE announced the completion of the transaction in separate statements on Wednesday.
Under the terms of the purchase agreement, Excelerate has acquired the assets and operations of the Montego Bay LNG terminal, the Old Harbour LNG terminal, and the 150 MW Clarendon combined heat and power plant.
Excelerate raised about $1 billion in equity and debt financings to fund the acquisition.
In connection with the closing of the acquisition, the maturity of Excelerate’s senior secured revolving credit facility was extended from March 2027 to March 2029 while the total capacity available for borrowing under the credit agreement was increased from $350 million to $500 million.
Also, concurrently with the acquisition’s closing, the company used the proceeds from the notes offering to repay the existing term loan under the credit agreement in full.
Steven Kobos, president and CEO of Excelerate, said the closing of this acquisition represents a “significant step forward” in the execution of Excelerate’s downstream expansion strategy.
“These assets align seamlessly with our operational expertise and long-term LNG supply agreements, while also presenting promising opportunities for future growth. This acquisition enhances our financial outlook through its stable, long-term cash flows with predictable margins,” he said.
NFE to reduce debt
NFE said in a separate statement that the proceeds from the transaction will be used to reduce NFE’s corporate debt and for general corporate purposes.
“The closing of the sale of our Jamaican assets to Excelerate is a significant milestone for the company as we streamline our operations and paydown corporate debt through asset sales,” said Wes Edens, Chairman and CEO of NFE.
Moreover, Edens said that NFE has “made a positive impact” on Jamaica’s energy transition, adding that the company is “confident that Excelerate will continue NFE’s vision of providing reliable and cost-effective energy to Jamaica.”