US LNG firm New Fortress Energy said it has executed a term loan facility secured by eight of its vessels to fund the development of its liquefied natural gas projects around the globe.
NFE said in a statement it made an initial borrowing of $430 million and can borrow up to $725 million under the shipping facility.
“The facility has a three-year term, and loans issued under the facility will bear interest at an annual rate equal to LIBOR plus 3.00%, subject to a 0.0% LIBOR floor,” the firm said.
Also, the shipping facility is prepayable at par at any time without penalty.
NFE said it would use net proceeds of the facility to fund the development and construction of the company’s energy infrastructure projects around the world.
The firm has this year revealed several developments and LNG supply deals, including the most recent project in Sri Lanka. It has also earlier this year added a shipping fleet of seven FSRUs and six LNG carriers as well as a 50% interest in Trains 1 and 2 of the FLNG Hilli, after the Golar deal.
“We continue to execute the plan we previously laid out to facilitate our growth with asset-level financings. This facility provides additional capital for us to build additional LNG terminals and infrastructure around the world,” Wes Edens, chairman and CEO, said.