Global LNG Marine Infrastructure Platform
Provides Reliable, Cleaner and More Affordable Energy to Support
Transition
New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) and Apollo (NYSE:
APO) today announced that they have entered into a definitive
Equity Purchase and Contribution Agreement (the “Purchase and
Contribution Agreement”) to sell 11 LNG infrastructure vessels
owned by NFE to a newly formed joint venture (the “JV” or the
“Platform”) between funds managed by Apollo and NFE in a
transaction valued at approximately $2 billion. The JV will be
owned approximately 80% by Apollo funds and 20% by NFE.
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This transaction will create a global marine infrastructure
platform underpinned by long-term contracts, benefitting from NFE’s
LNG downstream operations and development activities, as well as
Apollo’s leading investment and maritime experience. The Platform
provides critical infrastructure for the delivery, storage, and
regasification of liquefied natural gas (“LNG”) to power countries
around the world, which can reduce their reliance on oil and coal
to lower carbon emissions while enabling potentially substantial
cost savings. In addition to serving NFE’s projects globally, the
Platform also serves a diversified customer base of utilities and
energy companies worldwide under third-party charters.
The 11-vessel portfolio consists of 6 Floating Storage and
Regasification Units (“FSRUs”), 2 LNG Carriers (“LNGCs”), and 3
Floating Storage Units (“FSUs”). The total implied enterprise value
of the transaction is approximately $2 billion, and NFE will
receive approximately $1.1 billion in proceeds after accounting for
NFE’s share of the JV and paydown of existing debt.
As part of the transaction, NFE has agreed to charter 10 of the
11 of the vessels from the Platform for a period of up to 20 years
commencing either upon close of the transaction or upon expiration
of the vessels’ existing third-party charter agreements. The
Platform will also seek growth opportunities in support of both NFE
and third parties to support the energy transition and bolster
energy security globally.
“Together with Apollo, we are creating a leading LNG marine
infrastructure platform to help accelerate the energy transition
while freeing up capital to continue to invest into our Fast LNG
and downstream LNG projects worldwide,” said Wes Edens, Chairman
and CEO of New Fortress Energy. “We are pleased to be partnering
with Apollo in creating a maritime infrastructure company that will
help support NFE’s growing LNG infrastructure needs going
forward.”
Apollo Partner Brad Fierstein said, “Energy transition and
energy reliability are global priorities and core to Apollo’s
sustainable investing platform. We’re pleased to further these
initiatives through this long-term investment alongside our JV
partners at New Fortress Energy. This is a high-quality portfolio
that increases energy security around the world, accelerates
decarbonization efforts, and facilitates LNG use which is cleaner
and more affordable than diesel. We look forward to investing
behind the platform’s growth to drive a more sustainable
future.”
Subject to satisfying customary closing conditions, including
receipt of certain regulatory approvals and third-party consents,
closing of the transaction is expected to occur in Q3 of 2022.
Transaction proceeds are expected to be utilized to fund NFE’s FLNG
projects, as well as for ongoing downstream infrastructure and
general corporate purposes.
About New Fortress Energy
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy
infrastructure company founded to help address energy poverty and
accelerate the world’s transition to reliable, affordable, and
clean energy. The company owns and operates natural gas and
liquefied natural gas (LNG) infrastructure, ships and logistics
assets to rapidly deliver turnkey energy solutions to global
markets. Collectively, the company’s assets and operations seek to
support global energy security, enable economic growth, enhance
environmental stewardship, and transform local industries and
communities around the world.
About Apollo
Apollo is a high-growth, global alternative asset manager. In
our asset management business, we seek to provide our clients
excess return at every point along the risk-reward spectrum from
investment grade to private equity with a focus on three investing
strategies: yield, hybrid, and equity. For more than three decades,
our investing expertise across our fully integrated platform has
served the financial return needs of our clients and provided
businesses with innovative capital solutions for growth. Through
Athene, our retirement services business, we specialize in helping
clients achieve financial security by providing a suite of
retirement savings products and acting as a solutions provider to
institutions. Our patient, creative, and knowledgeable approach to
investing aligns our clients, businesses we invest in, our
employees, and the communities we impact, to expand opportunity and
achieve positive outcomes. As of March 31, 2022, Apollo had
approximately $513 billion of assets under management. To learn
more, please visit www.apollo.com.
Cautionary Language Regarding Forward-Looking
Statements
This communication contains forward-looking statements. All
statements contained in this communication other than historical
information are forward-looking statements that involve known and
unknown risks and relate to future events, our future financial
performance or our projected business results. You can identify
these forward-looking statements by the use of forward-looking
words such as “expects,” “may,” “will,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the
negative version of those words or other comparable words. Forward
looking statements include: the successful completion of the sale
and purchase of the vessels and creation of the JV; total implied
enterprise value; projected proceeds and the ability of NFE to
redeploy the proceeds from the transaction; cashflow expectations
for the vessels; the chartering of certain vessels to NFE; the
strategy and ability of the JV business platform to support its
goals in providing reliable, cleaner and more affordable energy to
support transition, reduce reliance by countries on oil and coal,
reducing carbon emissions and attaining cost savings; benefits to
be derived from experience from the partners of the JV; anticipated
growth strategy; the ability of NFE’s investment into its FLNG
Units; the success of the partnership between NFE and Apollo;
satisfaction of the closing conditions in the Purchase and
Contribution Agreement in accordance with the terms thereof and
within the required dates; and the expected structure and date of
closing of the transaction. It is uncertain whether any of the
events anticipated by the forward-looking statements will transpire
or occur, or if any of them do, what impact they will have on the
results of operations and financial condition of the parties to the
Purchase and Contribution Agreement or the stock prices of such
parties.
These forward-looking statements represent the Company’s
expectations or beliefs concerning future events, and it is
possible that the results described in this press release will not
be achieved. These forward-looking statements are necessarily
estimates based upon current information and are subject to risks,
uncertainties and other factors, many of which are outside of the
Company’s control, that could cause actual results to differ
materially from the results discussed in the forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to: the risk that the
proposed transactions may not be completed in a timely manner or at
all; common risks related to the sale and purchase of businesses or
assets, including among others the risk of valuation and successful
implementation, and the risk that we may not be able to realize the
benefits of any such transactions; the ability of the JV to
implement its business platform and to realize anticipated
efficiencies and benefits; common risks related to joint ventures,
including the timing and amount of commitments or obligations to
fund operating and/or capital expenditures, nonperformance by joint
venture, limited or no control over the management, business or
operations of the joint venture, and subordination of claims of
creditors in the event of a liquidation or reorganization;
possibility that any or all of the various conditions to the
consummation of the transaction may not be satisfied or waived (or
any conditions, limitations or restrictions placed on such
approvals); the receipt, on a timely basis or otherwise, of the
required approvals and consents for the transaction; breach or
failure by the parties to comply with the covenants and obligations
under the Purchase and Contribution Agreement; nonpayment or
nonperformance by any of NFE’s or the JV’s customers or suppliers;
including among others nonpayment or nonperformance by any of
parties to the charters; the effect of the announcement or pendency
of the transactions on our operations, including the ability of NFE
to retain and hire key personnel and maintain relationships with
customers, suppliers and others with whom NFE does business; the
ability of the parties to implement their respective plans,
forecasts and other expectations with respect to NFE’s and the JV’s
businesses after the completion of the proposed transactions;
adverse regional, national, or international economic conditions,
adverse capital market conditions and adverse political
developments; volatility in the price or demand of LNG products;
business disruption following the transaction; and the impact of
public health crises, such as pandemics (including coronavirus
(COVID-19)) and epidemics and any related company or government
policies and actions to protect the health and safety of
individuals or government policies or actions to maintain the
functioning of national or global economies and markets. These
factors are not necessarily all of the important factors that could
cause actual results to differ materially from those expressed in
any of NFE’s forward-looking statements. Other known or
unpredictable factors could also have material adverse effects on
future results.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in our
annual report, quarterly and other reports filed with the SEC,
which could cause its actual results to differ materially from
those contained in any forward-looking statement. We undertake no
duty to update these forward-looking statements, even though our
situation may change in the future.
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version on businesswire.com: https://www.businesswire.com/news/home/20220630005858/en/
For New Fortress Energy: Investors: Brett Magill
ir@newfortressenergy.com
Media: Jake Suski (516) 268-7403 press@newfortressenergy.com
For Apollo: Noah Gunn Global Head of Investor Relations
212-822-0540 IR@apollo.com
Joanna Rose Global Head of Corporate Communications 212-822-0491
Communications@apollo.com
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