On 5 March, 9fin put out a report on New Fortress Energy’s recent LME, referring to it as a “triple dip.” But was it really a “triple dip”? When George Constanza infamously “double dipped” his chip back in the 90s, he was dipping the same chip into the same bowl twice. While some might argue that it is the chip, and not the bowl, that is key in a double dip analysis, in the context of LMEs we are not so sure.

While the nomenclature around LME transactions is constantly evolving, we at 9fin believe that there is an important distinction to be made between an additional claim on the same assets and an additional claim on a different pool of assets.

In this report, we provide a simplified general description of “double dips” and other variations on the structure. We say “simplified general description” because there are multiple variations on these structures with different levels of complexity. We also look at the underlying purposes of these structures. Finally, we examine New Fortress Energy’s post-LME structure, and attempt to categorize it within our framework.