Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on May 13, 2015, detailing significant financing activities related to its Corpus Christi Liquefaction Project. The company's subsidiary, Cheniere CCH HoldCo II, LLC, issued $1.0 billion in 11% Senior Secured Notes due 2025. These notes are secured by pledged equity interests in the subsidiary and are convertible into Cheniere common stock, with registration rights provided to holders. Additionally, Cheniere Corpus Christi Holdings, LLC, the project's borrower, entered into a Term Loan Facility Agreement for approximately $11.5 billion to finance the construction and operation of two initial natural gas liquefaction trains, with potential for a third train. This debt financing is secured by substantially all assets of the loan parties and their equity interests. The company also entered into an Equity Contribution Agreement, committing to significant equity funding for the project, with provisions for additional funding based on project development and debt levels.
Key Highlights
- 1Issuance of $1.0 billion in 11% Senior Secured Notes due 2025 by subsidiary Cheniere CCH HoldCo II, LLC.
- 2The Notes are convertible into Cheniere Energy common stock and secured by pledged equity interests in the subsidiary.
- 3Entry into a $11.5 billion Term Loan Facility Agreement for the Corpus Christi Liquefaction Project.
- 4The Term Loan Facility is secured by a first priority lien on substantially all assets of the loan parties involved in the Corpus Christi Liquefaction Project.
- 5Cheniere Energy committed to providing approximately $2.64 billion in equity funding for the Corpus Christi Liquefaction Project via an Equity Contribution Agreement.
- 6Final Investment Decision (FID) approved for Trains 1 and 2 of the Corpus Christi Liquefaction Project.
- 7Notice to Proceed issued to Bechtel for the construction of Trains 1 and 2 of the Corpus Christi Liquefaction Project.