Summary
Cheniere Energy, Inc. (LNG) announced through its indirect subsidiary, Sabine Pass Liquefaction, LLC (SPL), the closing of a $1.2 billion Amended and Restated Senior Working Capital Revolving Credit and Letter of Credit Reimbursement Agreement. This facility, maturing on December 31, 2020, is crucial for funding working capital requirements related to the development and operation of its liquefaction facilities at the Sabine Pass LNG terminal in Louisiana. The funds will support the purchase and transportation of natural gas, as well as general corporate purposes, with specific sublimits for debt service reserve accounts and working capital needs. The agreement provides significant flexibility with an initial capacity of $1.2 billion, which can be expanded by up to $760 million and potentially an additional $390 million upon the completion of debt financing for the sixth liquefaction train. This demonstrates continued access to capital and supports the ongoing expansion of Cheniere's liquefaction capabilities. The facility is secured by substantially all of SPL's assets, underscoring the financial commitment to the project.
Key Highlights
- 1Closed a $1.2 billion Amended and Restated Senior Working Capital Revolving Credit and Letter of Credit Reimbursement Agreement for Sabine Pass Liquefaction, LLC (SPL).
- 2The facility matures on December 31, 2020, and will fund working capital for developing and operating liquefaction facilities at Sabine Pass LNG terminal.
- 3Funds can be used for natural gas purchase, transportation, storage, and general corporate purposes, with specific sublimits for debt service reserve accounts.
- 4The agreement allows for potential incremental commitments of up to $760 million, with an additional $390 million possible upon completion of debt financing for the sixth liquefaction train.
- 5The facility includes provisions for working capital loans up to $740 million and letters of credit up to $1.2 billion (with sublimits).
- 6The credit facility is secured by substantially all of SPL's assets on a pari passu basis.
- 7Interest rates are variable, based on LIBOR or a base rate, plus applicable margins, with commitment and letter of credit fees also applicable.