Summary
Cheniere Energy, Inc. (LNG) has disclosed the entry into a significant new credit facility through its subsidiary, Cheniere Energy Partners, L.P. (the Partnership). The "CQP Credit Facilities" provide up to $2.8 billion in aggregate debt financing, comprising a $450 million term loan for Cheniere Creole Trail Pipeline, L.P. (CCTP) and a $2.1 billion term loan for Sabine Pass LNG, L.P. (SPLNG), alongside a debt service reserve facility and a revolving credit facility. The primary purpose of these new facilities is to refinance existing debt, specifically the $400 million senior secured term loan at CCTP and approximately $2.12 billion in senior secured notes at SPLNG. This refinancing is a key strategic move aimed at optimizing the company's capital structure and managing its debt obligations. The CQP Credit Facilities are secured by substantially all assets of the Partnership and its Subsidiary Guarantors, with a defined waterfall for cash distributions and debt repayment priorities.
Key Highlights
- 1Entry into $2.8 billion "CQP Credit Facilities" by subsidiary Cheniere Energy Partners, L.P.
- 2Refinancing of approximately $400 million CCTP term loan and $2.12 billion SPLNG senior secured notes.
- 3The facility includes a $450 million CCTP term loan tranche and a $2.1 billion SPLNG term loan tranche.
- 4Includes a $125 million debt service reserve facility and a $115 million revolving credit facility.
- 5The credit facilities are secured by substantially all assets of the Partnership and Subsidiary Guarantors.
- 6Mandatory prepayments and repayment in quarterly installments commencing February 25, 2019, with a maturity date of February 25, 2020.
- 7Customary affirmative and negative covenants, including restrictions on additional indebtedness, asset sales, and affiliate transactions, with specific debt service coverage ratio requirements.