New Fortress raises $1.2 billion from bond issue

The Wes Edens-led firm announced on Tuesday the completion of the first step of its $2.7 billion issuance of new senior secured notes due 2029.

NFE said it aims to complete the transaction in two steps, and the first step completed was the funding of $1.2 billion new senior secured notes.

The second step will be an issuance and private exchange of $1.5 billion new senior secured notes expected to close during the first week of December for a total of $2.7 billion new notes issued that mature in November 2029.

However, the second step remains subject to customary closing conditions and there can be no assurance that the transaction will be completed as contemplated or under the expected timing, according to NFE.

As a result of the transaction, the company will achieve three key objectives.

These include refinancing $2.4 billion of NFE’s existing bonds, including all bonds maturing in 2025 and more than two-thirds of its outstanding bonds maturing in 2026 and 2029

Moreover, the objectives include extending the maturity of $900 million of the company’s $1 billion revolving credit facility to October 2027 and raising about $325 million in gross proceeds to provide additional liquidity for the company.

The transaction, in combination with the $400 million common equity offering completed in September, marks an “important milestone” for NFE as it takes a “significant step forward in strengthening the company’s balance sheet and positioning the company for future sustained growth,” NFE said.

Seeking strategic partners

NFE recently said it is seeking strategic partners for one or more of its core businesses to boost the company’s liquidity.

The company has begun work to identify strategic partners for one or more of its primary businesses, including projects in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua, FLNG 1, and Klondike.

Edens said during the third-quarter earnings call that NFE “believes that some of the parts of our businesses and units are worth significantly more than the current debt and equity levels of the company.”

“And so our focus is to close that gap by focusing on individual assets that can be capitalized, bringing partners, etc., to realize that value,” he said.

NFE shipped at least four LNG cargoes from its FLNG project off Mexico’s Altamira.

The company recently shipped the third LNG cargo to its operation in Puerto Rico.

In September, NFE shipped the first full LNG cargo from its first FLNG project to Europe.

This shipment onboard the 138,000-cbm Energos Princess recently arrived at the Dutch Gate LNG terminal in the port of Rotterdam.

Before this, NFE loaded the first Altamira LNG cargo in August.

This partial shipment was delivered to NFE’s La Paz, Mexico terminal.

The company previously said the FLNG project adds more than $2 billion of infrastructure to its asset base.

In addition to this project, NFE closed in July its previously announced $700 million loan for its second FLNG unit which it aims to install onshore in Altamira.