New Fortress Energy secures $800m loan to fund natural gas projects

New Fortress Energy has secured an $800m loan facility from certain funds and accounts managed by affiliates of Apollo Global Management.

The term loan facility comes with a three-year term. The loan issued under this facility has an annual interest rate equal to LIBOR plus 6.25% and subject to a 1.50% LIBOR floor and annual increases in the interest rate spread.

New Fortress will use the net proceeds from the loan to fund the development and construction of its energy infrastructure projects worldwide, as well as repay its existing $500m term loan facility completely.

New Fortress chairman and CEO Wes Edens said: “This transaction provides additional capital for us to continue to build LNG terminals and infrastructure around the world.

“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.”

An alternative investment manager, Apollo has approximately $323bn of assets under management as of September 2019 in credit, private equity and real assets funds. These funds are invested across a group of nine industries.

Apollo co-president James Zelter said: “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.

“Over the last decade, Apollo has built one of the largest alternative credit businesses in the world, with more than $200 billion 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.”

Closing of the loan facility is subject to the satisfaction of customary closing conditions.

New Fortress Energy builds and operates natural gas infrastructure and logistics. It is majority-owned by a fund managed by an affiliate of Fortress Investment Group.