New Fortress Energy Inc. (NASDAQ:NFE), a company specializing in natural gas distribution, announced on Thursday significant financial developments. The company, headquartered in New York, entered into an amendment of its credit agreement and is preparing to issue a large debenture in Brazil.
The credit agreement amendment, secured on November 14, involves New Fortress Energy, the lenders, and Morgan Stanley (NYSE:MS) Senior Funding Inc. as the administrative and collateral agent. This amendment, known as the Second Amendment, modifies the definition of Excluded Assets, allowing the company to pledge equity in certain subsidiaries to secure obligations under the agreement.
Concurrently, New Fortress Energy's indirect subsidiary, PortoCem Geração de Energia S.A., has initiated the process to issue debentures with an aggregate principal amount not to exceed R$4.5 billion. The proceeds are intended for reimbursing expenses, debt, and funding remaining construction costs for the PortoCem Power Plant in Brazil. The issuance of these debentures is expected to coincide with the repayment of the existing PortoCem bridge loan facility.
The debentures will be secured by pledges, including shares of PortoCem's capital, machinery and equipment related to the power plant, and a corporate guarantee by New Fortress Energy. Additionally, the company will enter into equity contribution agreements to further secure the obligations.
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