New Fortress Energy Inc | Fixed Income Analysis

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

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