New Fortress Energy has agreed a fully committed $800 mill term loan facility.
This facility was provided by funds and accounts managed by affiliates of Apollo Global Management, together with its consolidated subsidiaries.
It has a three-year term, and loans issued under the facility will bear interest at an annual rate equal to LIBOR plus 6.25%, subject to a 1.5% LIBOR floor and annual increases in the interest rate spread.
Net proceeds of the loan will be used to fund the development and construction of New Fortress’s energy infrastructure projects around the world, and to repay the company’s existing $500 mill term loan facility in full, it said.
“This transaction provides additional capital for us to continue to build LNG terminals and infrastructure around the world,” said New Fortress Chairman and CEO, Wes Edens. “Our investments in new terminals and modern power infrastructure bring significant economic and environmental benefits to customers. Apollo has a great track record of success with funding innovative projects around the world, and we’re excited to have their support.”
Apollo is a global alternative investment manager with about $323 bill of assets under management as of September, 2019 in credit, private equity and real assets funds invested across a core group of nine industries.
“Apollo is pleased to support the growth of New Fortress Energy, a market-leader that is having a tangible impact on driving the transition to clean energy and whose business strategy closely aligns with our ESG commitment and goals," said James Zelter, Apollo’s Co-President. "Over the last decade, Apollo has built one of the largest alternative credit businesses in the world, with more than $200 bill of assets under management invested across a diverse spectrum of more than 20 different strategies. This transaction represents the type of creative financial solutions Apollo is uniquely qualified to deliver.”
This facility is still subject to the customary closing conditions.