New Fortress Energy Amends Credit Agreements Following Jamaican Asset Sale

New Fortress Energy has executed amendments to its credit facilities in connection with the sale of its Jamaican business to Excelerate Energy. The company modified its revolving credit facility (RCF), term loan agreement (TLA), and uncommitted letter of credit agreement (ULCA) to accommodate the transaction and provide greater financial flexibility.

Under the revised terms, New Fortress Energy is permitted to apply $270 million of the asset sale proceeds toward early repayment of the RCF before September 30, 2025, bypassing the typical requirement to allocate 75% of asset sale proceeds to debt reduction. The term loan amendment mandates $55 million of the proceeds to be used for prepayment and introduces a higher interest rate structure, with a SOFR margin of 6.70% and a base rate margin of 5.70%.

The amendments also update financial covenants. The first lien debt ratio and fixed charge coverage ratio will not be tested for the quarter ending June 30, 2025. Future leverage thresholds have been revised downward over time, while the fixed charge coverage ratio must be at least 1.00 to 1.00 beginning in the third quarter.

Additional provisions restrict the use of cash for repurchasing 2026 senior secured notes, except under specific conditions. The company intends to reinvest the remaining sale proceeds and reduce other debt obligations.