Moody’s rates New Fortress loan Ba3

Moody’s Investors Service said it rated New Fortress Energy Inc.’s planned senior secured term loan Ba3 and revised the outlook to stable from negative.

The agency also affirmed the issuer’s B1 corporate family rating, B1-PD probability of default rating and the B1 ratings on its senior secured notes.

“NFE's new senior secured term loan B facility is rated Ba3, one notch above the CFR and the B1 rating of the existing 2025 and 2026 senior secured notes. The new term loan B facility shares on a pari passu basis the collateral and guarantees of some of its operating subsidiaries, that already support obligations under NFE's existing revolver facility and the senior secured notes. The Ba3 rating of the term loan B facility is supported by its first-priority claim on significant additional collateral related to the pledge of the newly built floating LNG facility, to be pro rata shared with the lenders under the revolver facility, but not with the holders of the existing notes,” Moody’s said in a press release.

The improved outlook reflects an expectation NFE will be able to perform robustly under its new contract in Puerto Rico and not need additional debt to support its planned investments in 2024-25.

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