New Fortress offers bonds to finance Brazilian LNG buy

Proceeds from the offering of $1.5bn in senior secured notes will help finance the acquisition of an LNG company, global energy infrastructure company New Fortress Energy said March 23.

“The company intends to use a portion of the net proceeds from this offering to fund the cash consideration for its previously announced acquisition of Golar LNG Partners L.P. and pay related fees and expenses,” New Fortress said. “The company intends to use any remaining proceeds from this offering for general corporate purposes, including making investments in developing projects.”

New Fortress Energy in January acquired Golar LNG in a multilateral deal valued at around $5bn. Among the assets obtained through the deal are a floating storage and regasification terminal in Brazil, a small fleet of LNG carriers and a stake in a floating liquefaction vessel, Hilli.

With the acquisition of Solar, New Fortress Energy CEO Wes Edens said in January that “we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.”

That same day, New Fortress said it had entered into a definitive agreement to acquire CH4 Energia, a Brazilian company that has the necessary permits to develop an LNG terminal at the port of Suape, which could go into service as early as next year.