Milbank Advised Lenders on the Acquisition Financing of LNG Vessel Portfolio for Apollo/New Fortress Energy Joint Venture

Milbank LLP advised the lenders in connection with the acquisition of 11 LNG infrastructure vessels owned by New Fortress Energy Inc. (“NFE”) by a newly formed joint venture between funds managed by Apollo Global Management (“Apollo”) and NFE. The joint venture will be owned approximately 80% by Apollo and 20% by NFE. Apollo and NFE have partnered to create a marine infrastructure platform that will expand opportunities for LNG services globally in support of energy transition and energy security.

As part of the transaction, NFE has agreed to charter 10 of the acquired 11 LNG vessels—a portfolio consisting of six floating storage and regasification units, two LNG carriers and three floating storage units—following the close of the transaction or upon expiration of the vessels' existing third-party charter agreements. The transaction is expected to close during the third quarter of 2022, subject to the satisfaction of customary closing conditions.

The Milbank team was led by Global Project, Energy & Infrastructure Finance partners Dan Bartfeld and Roland Estevez with support from partner Chris Taufatofua, special counsel Munib Hussain, Sean O’Neill and Christopher Kwan and associates Kilian de Cintré, Jacob Panagi, Yi Ming Chan, Tom Rhys Jones, Vince El Hayek, as well as Tax partner Andrew Walker.

“We are honored to have had a lead role on this important transaction which creates a very significant new LNG marine infrastructure platform and which will play a major role in support of the global energy transition,” said Dan Bartfeld.

“We are honored to work with the financing parties on this landmark acquisition financing which highlights our strength and experience throughout the LNG value chain,” added Roland Estevez.

Milbank has one of the largest project, energy and infrastructure groups in the world with over 130 dedicated lawyers in its offices in the Americas, Europe and Asia. In the past five years, the firm has acted as the lead legal advisor in a wide variety of energy transition, transportation infrastructure and power/energy projects worldwide that mobilized hundreds of billions of dollars of capital.