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New Fortress seals $725m loan backed by eight vessels

US-based New Fortress Energy has executed a term loan facility of up to $725m secured by eight of its vessels.

The company said it has made an initial borrowing of $430m under the facility that has a three-year term. It did not say which ships are involved in the deal. According to VesselsValue, New Fortress owns 15 vessels, including five LNG carriers and five floating storage regasification units (FSRUs).

Loans issued under the facility will bear interest at an annual rate equal to LIBOR plus 3% and are prepayable at par at any time without penalty. New Fortress intends to use the net proceeds to fund the development and construction of its energy infrastructure projects around the world.

“We continue to execute the plan we previously laid out to facilitate our growth with asset-level financings. This facility provides additional capital for us to build additional LNG terminals and infrastructure around the world,” said New Fortress chairman and CEO Wes Edens. “Our investments in LNG terminals and power infrastructure bring significant economic and environmental benefits to our expanding customer base.”

The company has sealed a deal in Sri Lanka to buy a 40% stake in West Coast Power, the owner of the 310 MW Yugadanavi power plant in Colombo, along with the rights to develop a new LNG terminal off the coast of the country’s capital city. The terminal is expected to begin operations in 2023.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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