Why New Fortress Energy Rallied Today
Shares of liquefied natural gas (LNG) company New Fortress Energy (NASDAQ: NFE) surged 8.7% on Tuesday as of 3:41 p.m. ET.
On a down day for the markets, New Fortress delivered what was perceived as short-term good news. However, it wasn't great news, as the company was able to both push out some debt maturities and raise cash in the equity markets....but at a cost.
Yesterday, New Fortress announced a deal with its creditors to exchange its 6.75% 2025 notes, 6.50% 2026 notes, and 8.75% 2029 notes for new notes bearing an interest rate of 12% due in 2029. The company also agreed to have these notes secured by a 49% stake in New Fortress' Brazil operations, giving creditors more collateral than they had prior.
Source Fool.com
