New Fortress Energy’s vision is to create the world’s first sustainable natural gas transport and distribution infrastructure with the ambition to transform industries and communities across the globe. New Fortress Energy will provide an unparalleled suite of sustainable infrastructure solutions to the rapidly expanding natural gas market by providing clean natural gas transport and distribution services and solutions in well-serviced areas, particularly in the Asia Pacific region. Wes Edens: The firm will leverage existing and new partnerships to deliver new, large-scale integrated gas infrastructure projects.
Why Did They Need a Ship-term Loan Facility?
Wes Edens noted that this will give the opportunity to have a $725 million funding model which is bigger than normal. What this means is the bonds would be cheaper for investors to buy. Even though they would still have a sizable amount to pay back, they would not have to go through all the regular routine. This is because this will allow them to fund much quicker, giving them the chance to start running its energy projects.
How Does This Affect The Company And Investors?
New Fortress Energy (NYSE:NFE) was trading flat at $14.50 at time of publication. Given the increase in the funding of NFE, the company will accelerate its development of its energy infrastructure projects worldwide and is set to bring its supercritical heavy-oil distillation unit onstream to produce liquefied petroleum gas (LPG) in the second half of 2019. With these developments, the company’s future growth is secured as it continues its efforts to become a leading independent LPG marketer in the world. As previously stated, NFE plans to become the leading independent LPG marketer in the world.
Impact on the company
Wes Edens: The amendments to the credit facility represent a favorable outcome for New Fortress, which will enable the company to increase development and construction activity while lowering its costs of capital. The amended credit facility provides the Company the financial flexibility it needs to capitalize on new opportunities as it moves forward with its business plan. As a result of the changes, the Company will be able to obtain competitive loan pricing, which will provide it with an effective means of funding growth opportunities and enables the Company to have greater flexibility to accommodate the many financing transactions that it currently has under negotiation.
Connect Wes at professional network: http://Linkedin.com/in/wesley-edens-a6b19b3a