CBR
search

New Fortress Energy secures new funds for expansion

NASDAQ-listed New Fortress Energy LLC announced today, January 13, that it has executed a fully committed US$800 million term loan facility provided by certain funds and accounts managed by affiliates of Apollo Global Management, Inc.

New Fortress announced a US$800 million term loan facility.

The Term Loan Facility has a three-year term, and loans issued under the facility will bear interest at an annual rate equal to LIBOR plus 6.25 per cent, subject to a 1.50 per cent LIBOR floor and annual increases in the interest rate spread.

The company said in its release on the new funding that the net proceeds of the loan will be used to fund the development and construction of New Fortress’s energy infrastructure projects around the world, and to repay the company’s existing $500 million term loan facility in full. The company built Florida’s first LNG production facility and is now focused on expanding its global reach.

“Apollo is pleased to support the growth of New Fortress Energy, a market-leader that is having a tangible impact on driving the transition to clean energy and whose business strategy closely aligns with our ESG commitment and goals.”

– Co-President of Apollo, James Zelter

New Fortress has invested significant funds in Jamaica to deliver the country’s first LNG after which it has been in pursuit of international expansion.

Chairman and CEO Wes Edens, commenting on the new funding, said, “This transaction provides additional capital for us to continue to build LNG terminals and infrastructure around the world.”

New Fortress Energy chief executive officer, Wes Edens. (Photo: bloomberg.com)

Investing company Apollo is described as a global alternative investment manager with approximately US$323 billion of assets under management as of September 2019 in credit, private equity and real assets funds invested across a core group of nine industries.

“Apollo is pleased to support the growth of New Fortress Energy, a market-leader that is having a tangible impact on driving the transition to clean energy and whose business strategy closely aligns with our ESG commitment and goals,” said James Zelter, Co-President of Apollo.

The closing of the Term Loan Facility is subject to the satisfaction of customary closing conditions.

New Fortress Energy builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions. The company is a majority-owned by a fund managed by an affiliate of Fortress Investment Group.