New Fortress completes restructuring that extinguishes $5.7 billion of debt

New Fortress Energy ($NFE) completed a court-supported restructuring that separates its Brazilian operations from the remaining business and extinguishes approximately $5.7 billion of third-party debt. The transaction also provides $136.5 million of new financing. Management said corporate debt in the remaining business is approximately $700 million following the recapitalization.

The balance-sheet relief comes with a substantial transfer of ownership and economic rights to creditors. They receive all equity in the Brazilian business, preferred equity in the remaining company with a $2.45 billion liquidation preference, 65% of its common equity and approximately $571.3 million of term loans. The transaction materially changes the capital structure; debt reduction should not be interpreted as an equivalent gain accruing to existing common shareholders.

Sources:

• New Fortress Energy — completion announcement, Business Wire