Summary
Cheniere Energy, Inc. (LNG) announced through its indirect, wholly-owned subsidiary, Cheniere Corpus Christi Holdings, LLC (CCH), the closing of a $350 million Working Capital Facility Agreement on December 14, 2016. This facility is designed to provide CCH with essential funding for working capital requirements related to the development and operationalization of its Corpus Christi, Texas liquefied natural gas (LNG) liquefaction and pipeline projects. The agreement involves a syndicate of lenders, including The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation as Issuing Banks, and Mizuho Bank, Ltd. as Swing Line Lender. The facility allows for Working Capital Loans, Letters of Credit, and Swing Line Loans, with specific sublimits for general corporate purposes and swing line loans. The funds will be utilized for critical operational expenses such as gas purchase, transportation, and storage costs, funding debt service reserves, and general corporate needs. This financing is a crucial step in bringing the Corpus Christi LNG facilities online, underscoring Cheniere's ongoing commitment to its growth and project execution strategy.
Key Highlights
- 1Cheniere's subsidiary, CCH, secured a $350 million Working Capital Facility Agreement.
- 2The facility is for working capital needs related to the Corpus Christi LNG liquefaction and pipeline projects.
- 3Funds can be used for gas purchase, transportation, storage expenses, debt service reserves, and general corporate purposes.
- 4The facility includes a General Corporate Purposes Sublimit of up to $75 million and a Swing Line Sublimit of up to $25 million.
- 5The facility matures on December 14, 2021, with provisions for annual repayment reduction.
- 6Loans will bear interest at variable rates based on LIBOR or a base rate, plus an applicable margin.
- 7The facility is secured on a pari passu basis by substantially all assets of CCH and its guarantors, including a pledge of membership interests.