New Fortress Energy loan changes emerge; Cook & Boardman tables term loan transaction

By Sara Rosenberg

New York, Oct. 27 – In the primary market on Friday, New Fortress Energy Inc. (NFE) increased the size of its first-lien term loan B, widened the spread and original issue discount, sweetened the call protection and shortened the maturity.

Also, Cook & Boardman Group (Red Fox CD Acquisition Corp.) withdrew its term loan B from market, and Ineos Quattro joined the near-term new issue calendar with plans for U.S. and euro term loan Bs.

New Fortress Energy lifted its senior secured covenant-lite first-lien term loan B (Ba3/BB/BB-) to $856 million from $835 million, raised pricing to SOFR plus 500 basis points from SOFR plus 450 bps, removed a 25 bps pricing step-down upon corporate rating upgrades from two of three agencies, and moved the original issue discount to 92 from revised talk of 93 and initial talk of 96, according to a market source.

Additionally, the call protection on the term loan was revised to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, the maturity was shortened to five years from seven years and the MFN was set at 50 bps for life instead of having a 12-month sunset, the source said.

The term loan still has a 0.75% floor.

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