New Fortress Energy Inc. recently completed its previously announced $2 billion joint venture (JV) with Apollo, establishing a new global LNG maritime platform named Energos Infrastructure.
Energos Infrastructure is a global marine infrastructure platform underpinned by long-term contracts, benefitting from New Fortress’ LNG downstream operations and development activities and Apollo’s leading investment and maritime experience, according to a company release on Aug. 15.
“Reliable energy infrastructure is essential to address the global energy crisis and reduce emissions,” commented Wes Edens, chairman and CEO of New Fortress Energy. “We are pleased to partner with Apollo to launch a premier LNG maritime infrastructure company that will enhance our efforts to bring cleaner fuel and energy security to customers around the world.”
The Energos platform is owned approximately 80% by Apollo-managed funds and 20% by New Fortress. Energos will establish its headquarters in Stamford, Conn.
Energos is led by newly-appointed CEO Arthur Regan, a veteran maritime industry chief executive and Apollo operating partner, having established and led both publicly-traded and private equity-owned maritime enterprises over the past three decades.
“Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investing platform. We’re very pleased to complete the JV transaction with NFE, and to have an industry veteran like Art at the helm, leading the business into its next phase,” added Apollo Partner Brad Fierstein in the release.
Regan began his career as an officer on merchant ships, including sailing as captain. He will also serve as director on the Energos board.
In addition to Regan, Kevin Kilcullen has been named CFO of Energos. Kilcullen was previously CFO at publicly-traded Diamond S Shipping until the closing of its recent merger transaction.
Energos owns and operates an 11-vessel portfolio, consisting of 6 floating storage and regasification units, three floating storage units and two LNG carriers. The total implied enterprise valuation of Energos is approximately $2 billion based on the JV transaction.
As part of the transaction between New Fortress and Apollo announced July 5, New Fortress has agreed to charter 10 of the vessels from the platform for a period of up to 20 years, and those charters have commenced immediately, or will commence upon expiration of the vessels’ existing third-party charter agreements.
The Energos platform will also seek growth opportunities in support of both New Fortress and third parties to support the energy transition and bolster energy security globally, according to the company release.
Apollo Capital Solutions performed debt advisory and placement services for the JV and the debt financing was led by Brookfield Infrastructure Debt and also included a syndicate of other credit funds managed by Global Infrastructure Partners, HPS Investment Partners LLC, and Carlyle Global Credit. Investec Inc. and BMO Capital Markets Corp. led the arrangement of revolving credit facilities to support the transaction.
New Fortress energy was advised by Akin, Gump in the transaction. Apollo was advised by Vinson & Elkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP. The credit group was advised by Milbank LLP. Morgan Stanley and DnB Capital Markets acted as financial advisers to NFE in the transaction.
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