Wes Eden’s New Fortress Energy – Shipping Term: What It Is and Why You Should Care
New Fortress Energy, Inc. is a diversified, growth-oriented holding company that owns and operates the nation’s largest independent natural gas storage system and an international, intermodal marine shipping business. Wes Edens (CEO): The firm operates a natural gas storage system with the ability to safely store more than 25 billion cubic feet of secure, supply-demand-driven natural gas for transportation and heating needs.
Likewise, the firm owns natural gas terminals, including more than 11 marine terminals in the U.S. and global markets. In addition, New Fortress Energy provides natural gas transportation services through its significant ownership and operation of a network of natural gas pipelines, processing facilities, and transportation assets.
A revolving credit facility is a credit facility that enables the borrowing party to borrow on a revolving basis. It is a credit facility that allows the borrower to pledge the collateral from the revolving facility. Wes Edens: The amendments to the credit facility provide New Fortress Energy the flexibility to fund future acquisitions and investment opportunities in a manner that improves its financial position and improves the strength of its balance sheet. This amendment is also in line with market practices that generally provide weaker borrowers an opportunity to strengthen their position.
Under its prior arrangement, New Fortress Energy had received 25% of the loan pool upon closing. In connection with the existing credit facility amendment, the lenders under the credit facility have agreed to increase the shipping term loan (“SLTB”) borrowing base to $450 million (at the sole discretion of the lenders), bringing the SLTB capacity to $725 million and eliminating the subordinated portion of the SLTB.
“Our new credit facility was constructed to support the fast pace of our global growth strategy,” said Wes Edens, CEO of New Fortress Energy. “With the new amendments, we can capture and move forward with an innovative asset portfolio expansion, which further enhances the financial and operating flexibility to accommodate our fast-paced organic growth plan.
New Fortress Energy (NYSE: NFE) is the largest privately-held provider of LNG storage and regasification services in North America, owning and operating four LNG storage facilities with a capacity of up to 140 million cubic feet of natural gas (MMCF) each, as well as 11 LNG carriers, all within the U.S. Gulf Coast.