New Fortress Energy Announces Pricing of $250 Million of Senior Secured Notes

Rhea-AI Summary

New Fortress Energy Inc. (NASDAQ: NFE) announced the pricing of a private offering of $250 million in additional 6.750% senior secured notes due 2025. These notes will be issued at 105.25% of principal, with accrued interest from September 2, 2020. The net proceeds will be utilized for general corporate purposes. The offering is directed at qualified institutional buyers and will not be registered under the Securities Act, limiting its sale in the U.S. The closing of this offering is subject to limited conditions.

Positive

• Successful pricing of a private offering of $250 million in senior secured notes.
• Intended use of net proceeds for general corporate purposes, supporting business operations.

Negative

• Additional Notes will be issued at a premium of 105.25%, raising concerns about future financial obligations.

New Fortress Energy Inc. (NASDAQ: NFE) (the “Company”) announced today the pricing of its previously announced private offering of $250 million aggregate principal amount of additional 6.750% senior secured notes due 2025 (the “Additional Notes”). The Additional Notes will be issued at an issue price equal to 105.25% of principal, plus accrued interest from and including September 2, 2020. There are $1,000.0 million 6.750% senior secured notes due 2025 outstanding as of the date hereof. The Company intends to use the net proceeds from the offering for general corporate purposes. The closing of the offering is subject to certain limited conditions.

The Additional Notes and the guarantees thereof were offered in the United States to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States under Regulation S under the Securities Act. The Additional Notes and the guarantees thereof will not be registered under the Securities Act or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About New Fortress Energy Inc.

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements regarding the consummation of the offering or the Company’s anticipated use of the net proceeds from the offering. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “targets,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors.

All forward-looking statements speak only as of the date on which it is made. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in our annual, quarterly and other reports we file with the SEC. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, levels of activity, performance, projections or achievements.

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FAQ

What is the purpose of New Fortress Energy's recent $250 million offering?

The net proceeds from the $250 million offering of senior secured notes will be used for general corporate purposes.

What is the interest rate on the additional notes announced by NFE?

The additional notes have an interest rate of 6.750%.

What are the terms for the new notes issued by New Fortress Energy?

The new notes are senior secured notes due in 2025, priced at 105.25% of principal.

Who can purchase the additional notes issued by NFE?

The additional notes are offered to qualified institutional buyers under Rule 144A in the U.S. and to investors outside of the U.S. under Regulation S.

Are the new notes issued by New Fortress Energy registered?

No, the additional notes will not be registered under the Securities Act or any state securities laws.