Fortress Energy’s $725 Million Term Loan Facility: What It Means for Investors

New Fortress Energy operates, builds and owns onshore and offshore liquefied natural gas (LNG) carriers and floating storage regasification units (FSRUs). The Company’s strategic vision is to create a global LNG carrier operating platform to serve all North American, Asian and European markets for natural gas transportation and regasification.

 

Wes Edens: To accelerate and expand the development and commercialization of the Company’s LNG operations, the Company has led the development of the largest greenfield natural gas LNG projects in the world. The Company’s joint venture with BP established one of the world’s largest LNG import facilities, with a storage capacity of 32 million tons, located at their Forties Pipeline System in the North Sea.

 

Future of New Fortress Energy

 

New Fortress Energy is pleased to announce that certain strategic kv have been identified that will enhance the Company’s ability to meet the global energy demand. These initiatives include:

 

  • Expanding energy services to existing energy customers
  • Co-innovating with existing and new customers to develop longer term energy infrastructure projects
  • Development of new geographies through targeted acquisitions

 

Why Fortress Energy’s New Loan Facility?

 

Wes Edens: The energy infrastructure financing market is highly fragmented, and many new financing solutions for these types of projects have emerged in recent years. New Fortress Energy’s successful renegotiation of its $900 million credit facility with certain major banks in late 2016, as well as this new financing with more reputable lenders, will not only help the company increase its project development pipeline and access to capital, but will also provide stability to the balance sheet of the Company as a result of higher pricing and potentially lower interest payments.

 

Good News for the Company

 

“We are pleased to announce this $725 million long-term shipping term loan facility which provides the critical funding for the development and construction of our energy infrastructure projects,” said Wes Edens, Chief Executive Officer of New Fortress Energy. “This long-term capital will be used to fully fund our recently announced $1.85 billion pipeline and terminal projects, representing a new era for our company, our employees, the communities where our projects are located and the customers we serve. The more than 60 percent reduction in facility costs in our agreement with the banks confirms that our infrastructure projects are truly competitive in the global energy marketplace.”