New Fortress Energy Inc. (NASDAQ:NFE), a company engaged in natural gas distribution, has entered into several amendments to its credit agreements, as per its 8-K filing with the SEC. The amendments were executed on August 31, 2024, and involve modifications to the company's existing credit facilities, including suspending certain financial covenants and adding new ones.
The changes include the suspension of the maximum Debt to Total Capitalization Ratio for the quarters ending September 30, 2024, December 31, 2024, and March 31, 2025. Additionally, a new covenant requires the company to maintain a minimum consolidated liquidity of $100.0 million as of the last day of any fiscal quarter, starting September 30, 2024.
Restrictions have been added to the company's ability to make certain restricted payments, such as capping dividends on common stock at $0.10 per share per fiscal quarter. The company is also restricted from incurring liens on certain collateral, engaging in affiliate transactions involving certain collateral, and consummating asset sales involving certain collateral.
The effectiveness of these amendments is contingent upon the satisfaction of certain conditions by September 30, 2024. New Fortress Energy has expressed that there is no assurance these conditions will be met.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.