Published on 8/19/2020 in the Prospect News High Yield Daily.
New Issue: New Fortress Energy prices upsized $1 billion five-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Aug. 19 – New Fortress Energy Inc. priced an upsized $1 billion issue of five-year senior secured notes (B1/B+) at par to yield 6¾% on Wednesday, according to market sources.
The issue size increased from $800 million.
The yield printed at the tight end of yield talk in the 6 7/8% area. Initial guidance was in the 7% area.
Morgan Stanley & Co. LLC is the bookrunner.
The New York-based energy infrastructure company plans to use the proceeds to pay off the $800 million outstanding under its credit agreement, with the remainder, if any, to be used for general corporate purposes, including financing operations. The additional proceeds resulting from the $200 million upsizing of the deal will be used to repay debt.
Issuer: | New Fortress Energy Inc.
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Amount: | $1 billion, increased from $800 million
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Maturity: | Sept. 15, 2025
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Securities: | Senior secured notes
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Bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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Co-managers: | Apollo Global Securities LLC, Barclays, BTIG LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Evercore Group LLC, JMP Securities LLC, Johnson Rice & Co. LLC, Scotia Capital (USA) Inc., Stifel Nicolaus & Co. Inc., Tuohy Brothers Investment Research Inc. and WR Securities LLC
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Coupon: | 6¾%
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Price: | Par
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Yield: | 6¾%
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Spread: | 647 bps
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First call: | Sept. 15, 2022 at 103.375
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Trade date: | Aug. 19
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Settlement date: | Sept. 2
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Ratings: | Moody's: B1
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| S&P: B+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 6 7/8% area
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Marketing: | Roadshow
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