Value and Recommendation
New Fortress Energy has successfully executed on its expansion so far, in line with analyst and rating agency expectations. The company’s notes have performed well as credit ratings, and metrics have improved given management’s successful execution as well as favourable energy market conditions for the company. Despite the good news, however, the company and industry has inherent risks such as environmental, political and commodity price risks which could change the company’s outlook materially very quickly. As a result, we rate the NFE 6.75% 2025 and 6.50% 2026 bonds as MARKETWEIGHT to balance the good yield, liquidity and short-term expectations with the risks involved with the business
| Industry: | Energy | Energy |
|---|---|---|
| Bond Name | NFE 6.750% 2025 | NFE 6.50% 2026 |
| Credit Rating (Fitch)/Outlook | BB-/Stable | BB-/Stable |
| Maturity | September 15th, 2025 | September 30th, 2026 |
| Issue Size | US$1.25 Bn | US$1.50 Bn |
| Rank | Secured | 1 st Lien |
| Current Price (July 25, 2022) Source: Bloomberg | US$95.01 | US$97.37 |
| Yield to Maturity (Bid/Ask) | 8.02%/7.83% | 7.79%/7.62% |
| Yield to Worst (@maturity) | 7.83% | 7.62% |
| Recommendation | MARKETWEIGHT | MARKETWEIGHT |
Full Fixed Income Analysis
