New Fortress Energy Inc. a leading global energy infrastructure company, has successfully completed the first phase of its $2.7 billion issuance of new senior secured notes, which is set to bolster its financial position and facilitate future growth. The company’s transaction will be completed in two steps, with the first step having successfully raised $1.2 billion in new senior secured notes. The second step, expected to close in early December, will consist of an additional $1.5 billion in new senior secured notes, completing the full $2.7 billion issuance, all of which are set to mature in November 2029.
This transaction is a pivotal move for New Fortress Energy, as it aligns with several key strategic objectives. The company is focused on improving its financial flexibility, extending debt maturities, and increasing liquidity, all of which will enable it to continue driving its global energy solutions. Upon completion of the entire transaction, the company will accomplish the following goals:
- Refinance Existing Debt: Approximately $2.4 billion of the company’s existing bonds will be refinanced, including all bonds due in 2025 and a significant portion (more than two-thirds) of the bonds maturing in 2026 and 2029. This refinancing effort will help New Fortress Energy better manage its debt load and improve the maturity profile of its obligations.
- Extend Credit Facility Maturity: As part of the transaction, $900 million of the company’s existing $1 billion Revolving Credit Facility will be extended until October 2027. This extension is contingent upon the completion of the second step of the transaction and will provide New Fortress Energy with greater financial flexibility and security moving forward.
- Enhance Liquidity: The issuance of the new senior secured notes will also raise approximately $325 million in gross proceeds, which will be used to further strengthen the company’s liquidity position. This increased liquidity will support New Fortress Energy’s ongoing operations and enable it to invest in future growth opportunities.
The successful completion of the first step of the transaction, combined with the approximately $400 million common equity offering completed earlier this year in September, represents a significant milestone in New Fortress Energy’s efforts to optimize its capital structure. By improving its balance sheet, the company is better positioned to pursue its long-term growth objectives, particularly as it continues to build out its energy infrastructure and deliver sustainable energy solutions globally.
The second phase of the transaction, which involves the issuance and private exchange of an additional $1.5 billion in notes, is subject to customary closing conditions. While New Fortress Energy is optimistic about the completion of this phase, there can be no assurance that the transaction will close as planned or within the expected timeframe.
Founded with the mission to combat energy poverty and accelerate the global transition to reliable, affordable, and clean energy, New Fortress Energy has become a prominent player in the energy infrastructure sector. The company owns and operates a wide range of assets, including natural gas and liquefied natural gas (LNG) infrastructure, as well as an integrated fleet of ships and logistics assets. These resources enable New Fortress Energy to rapidly deploy turnkey energy solutions to markets around the world, reinforcing energy security, stimulating economic growth, and driving environmental sustainability.
The company’s operations are designed to enhance local industries and communities by providing affordable and dependable energy sources. By focusing on innovative, integrated energy solutions, New Fortress Energy plays a key role in transforming energy landscapes and supporting the transition to a more sustainable global energy system.
Overall, the $2.7 billion senior secured notes issuance represents a critical step for New Fortress Energy as it continues to strengthen its financial position, improve its debt maturity profile, and enhance its liquidity, positioning itself for continued growth and success in the global energy market.
