- Excelerate Energy (EE, Financial) launches a $700 million senior notes offering due 2030.
- The proceeds will fund the $1.055 billion acquisition of New Fortress Energy's Jamaica operations.
- The notes are exclusively offered to qualified institutional buyers and international investors.
Excelerate Energy Inc. (EE), based in The Woodlands, Texas, is moving forward with a major financial transaction, announcing a $700 million offering of unsecured senior notes due in 2030. The initiative is spearheaded by its subsidiary, Excelerate Energy Partnership.
The proceeds from this offering will be utilized to finance the $1.055 billion acquisition of New Fortress Energy's Jamaica business. This acquisition is set to significantly expand Excelerate's operational footprint in the market.
In addition to funding the acquisition, Excelerate plans to use part of the proceeds to repay $163.6 million in outstanding borrowings under its term loan facility, as of December 31, 2024. The funds will also cover related fees and expenses.
The senior notes, guaranteed by certain subsidiaries, are being offered to qualified institutional buyers in the United States under Rule 144A and to international investors under Regulation S of the Securities Act.
This offering positions Excelerate for strategic growth while restructuring its existing debt profile. However, it also signals a significant increase in the company's debt load, raising investor attention towards the potential risks and rewards associated with this financial maneuver.
