Published on 3/5/2024 in the Prospect News High Yield Daily.
New Issue: New Fortress Energy prices upsized $750 million five-year notes at par to yield 8¾%
By Paul A. Harris
Portland, Ore., March 5 – New Fortress Energy Inc. priced an upsized $750 million issue of five-year senior secured notes (B1/BB/BB-) at par to yield 8¾% on Tuesday, according to market sources.
The issue size increased from $500 million.
The yield printed in the middle of yield talk in the 8¾% area. Initial guidance was in the high-8% to low-9% area.
Joint bookrunners were Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, Natixis Securities Americas LLC, MUFG Securities Americas Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Goldman Sachs & Co. LLC, Barclays, Citigroup Global Markets Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC.
The New York-based integrated gas-to-power company plans to use the proceeds, including the incremental proceeds resulting from the $250 million upsize of the deal, to repay a portion of its outstanding debt, including its tender offer for up to $375 million of its 6¾% senior secured notes due September 2025, and/or for general corporate purposes.
| Issuer: | New Fortress Energy Inc.
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| Amount: | $750 million, increased from $500 million
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| Issue: | Senior secured notes
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| Maturity: | March 15, 2029
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| Joint bookrunners: | Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, Natixis Securities Americas LLC, MUFG Securities Americas Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Goldman Sachs & Co. LLC, Barclays, Citigroup Global Markets Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
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| Co-managers: | BTIG LLC, Evercore, John Rice & Co., Stifel Nicolaus & Co. Inc. and Tuohy Bros.
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| Coupon: | 8¾%
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| Price: | Par
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| Yield: | 8¾%
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| Spread: | 462 bps
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| First call: | March 15, 2026 at 104.375
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| Trade date: | March 5
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| Settlement date: | March 8
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| Ratings: | Moody’s: B1
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 8¾% area
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| Marketing: | Roadshow
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