New Fortress Energy Inc. (NFE) and Apollo announced that they have entered into a definitive Equity Purchase and Contribution Agreement to sell 11 LNG infrastructure vessels owned by NFE to a newly formed joint venture (JV) between funds managed by Apollo and NFE in a transaction valued at approximately US$2 billion. The JV will be owned approximately 80% by Apollo funds and 20% by NFE.
The 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 US$2 billion, and NFE will receive approximately US$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 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.
Subject to completing customary closing conditions, including receipt of certain regulatory approvals and third-party consents, the transaction's closing is expected in Q3 of 2022.