Why New Fortress Energy (NFE) Shares Jumped Over 20% In After-Hours Trading?
New Fortress Energy Inc. (NASDAQ:NFE) shares surged 20.54% in after-hours trading on Thursday, climbing to $1.76.
Check out the current price of NFE stock here.
The stock ended Thursday's regular session up 25.86% at $1.46, according to Benzinga Pro data.
Credit Facility Amendment
The liquefied natural gas infrastructure company signed an Eleventh Amendment to its Letter of Credit and Reimbursement Agreement with Natixis, New York Branch, last week, according to a Thursday 8-K filing.
Key Terms Modified
The amendment extends the credit facility’s maturity date to March 31, 2026.
New Fortress Energy obtained a covenant holiday for its consolidated first lien debt ratio and fixed charge coverage ratio requirements for the fiscal quarters ending in September and December.
According to the Securities and Exchange Commission filing, the New York-based company also eliminated minimum liquidity requirements, but it also lost certain flexibility regarding dividend payments and distributions.
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Default Risk Provisions
The amended agreement limits payments on certain outstanding debt, including the Nov. 17 interest payment on the company's 2029 Notes Indenture issued by its subsidiary, NFE Financing LLC.
The filing cautions that if NFE Financing does not uphold its Forbearance and Waiver Agreement dated Nov. 17, it could trigger a default. Under such scenario, substantially all outstanding debt could be accelerated, and the company "may be required or compelled to pursue additional restructuring initiatives" that "could have a material and adverse impact on stockholders."
Financial Distress Context
Fitch Ratings, the credit rating agency, downgraded the company's Long-Term Issuer Default Rating to ‘RD' (Restricted Default) on Thursday after a missed interest payment.
Stock Performance
The stock has dropped 91.04% so far this year.
NFE shares have an annual trading range of $0.98 to $16.66, with a market capitalization of $415.45 million.
Benzinga Edge Stock Rankings indicate that NFE stock has a negative price trend across all time frames. Track the performance of other players in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.