New Fortress Energy funds CapEx via credit facility, letter of credit

By Devika Patel

Knoxville, Tenn., July 21 – New Fortress Energy Inc. has secured money to fund its capital expenditures through a new letter of credit, a recent $200 million revolving credit facility and planned divestitures.

“We just signed a new letter of credit facility, which we are excited about,” chief financial officer Christopher S. Guinta said on the company’s investor update conference call on Wednesday.

“This allows us to use the facility to free up currently restricted cash and also allows for a more efficient use of working capital.

“On June 17, we announced the sale and the leaseback of the Jamaica power plant, which will bring in $280 million, with $100 million of that already committed.

“That leaves us around $400 million of remaining CapEx, which we can fund through a capital raise off of assets that we could sell,” he said.

New Fortress Energy entered into a credit agreement on April 15, providing for a $200 million revolving credit facility.

The revolver will mature in 2026 and has a one-year extension option.

There is a $100 million letter-of-credit sub facility.

Borrowings will bear interest at Libor plus 250 basis points if usage is less than or equal to 50% of commitments or Libor plus 275 bps otherwise.

Morgan Stanley Senior Funding, Inc. and Goldman Sachs USA are the joint lead arrangers and bookrunners.

Morgan Stanley is the agent.

Proceeds may be used for working capital and general corporate purposes.

New Fortress Energy is a New York-based energy infrastructure company.

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