New Fortress Power Inc. (NFE) has closed the sale of its belongings and operations in Jamaica to Excelerate Power, Inc. for $1.055 billion.
Excelerate has acquired full possession of NFE’s liquefied pure gasoline (LNG) import terminal in Montego Bay, an offshore floating storage and regasification terminal in Outdated Harbour, and a 150-megawatt (MW) mixed warmth and energy plant in Clarendon, together with the related infrastructure.
Proceeds from the transaction might be used to cut back NFE’s company debt and for basic company functions, the corporate stated in a information launch.
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“The closing of the sale of our Jamaican belongings to Excelerate is a big milestone for the Firm as we streamline our operations and paydown company debt by asset gross sales,” NFE Chairman and CEO Wes Edens stated. “NFE has made a optimistic influence on Jamaica’s vitality transition, and we’re pleased with the contributions our world class workers and belongings have made in bettering vitality prices and reliability on the island. We’re assured that Excelerate will proceed NFE’s imaginative and prescient of offering dependable and cost-effective vitality to Jamaica and proceed to drive substantial progress in direction of bettering Jamaica’s vitality future”.
“Following the sale of our Jamaica enterprise, our plan is to simplify our steadiness sheet with a possible asset primarily based financing with an identical construction to different liquefier financings and utilizing our sturdy portfolio of LNG terminals and long run LNG provide and downstream demand contracts,” NFE stated.
Excelerate raised roughly $1.0 billion in fairness and debt financings to fund the acquisition, the corporate stated in a separate assertion.
Within the second quarter, Excelerate stated it accomplished an fairness providing of 8 million shares of sophistication A standard inventory for $212 million of gross proceeds and closed an $800 million providing of 8.000% senior unsecured notes due 2030.
The maturity of Excelerate’s senior secured revolving credit score facility was prolonged from March 2027 to March 2029 and the whole capability out there for borrowing underneath the credit score settlement was elevated from $350 million to $500 million, in response to the assertion.
“The closing of this acquisition represents a big step ahead within the execution of Excelerate’s downstream enlargement technique,” Excelerate President and CEO Steven Kobos stated. “These belongings align seamlessly with our operational experience and long-term LNG provide agreements, whereas additionally presenting promising alternatives for future progress. This acquisition enhances our monetary outlook by its secure, long-term money flows with predictable margins. We’re assured that integrating this Jamaica platform will generate substantial worth for our shareholders whereas advancing our mission to offer cleaner, more cost effective pure gasoline options to the folks of Jamaica”.
Excelerate stated in an earlier assertion that it plans to make use of its personal Enterprise International LNG provide “which is well-matched with buyer offtake commitments, minimizing commodity danger”. The corporate has a 20-year Enterprise International LNG provide settlement for 0.7 million metric tons every year.
The acquisition additionally expands on the corporate’s core floating storage and regasification unit (FSRU) terminal companies and gasoline provide companies in a progress market, positioned in a extremely engaging Atlantic basin market with entry to plentiful, close by U.S. Gulf Coast LNG provide sources, Excelerate stated.
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