Summary
Cheniere Energy, Inc. (LNG) has entered into a $750 million Revolving Credit Facility, effective March 2, 2017, aimed at funding its Corpus Christi natural gas liquefaction and pipeline projects. This facility, maturing on March 2, 2021, provides Cheniere with significant financial flexibility for its ongoing development activities. While primarily designated for equity contributions to the Corpus Christi project and related expenses, up to 20% of the facility can be used for general corporate purposes, with potential for this to increase based on project funding needs and cash reserves.
Key Highlights
- 1Cheniere Energy executed a $750 million Revolving Credit Facility agreement on March 2, 2017.
- 2The facility's primary purpose is to fund equity contributions for the Corpus Christi natural gas liquefaction and pipeline projects.
- 3A portion of the credit line (up to 20%) can be utilized for general corporate purposes, subject to certain conditions.
- 4The Revolving Credit Facility matures on March 2, 2021.
- 5Interest rates on loans will be variable, based on LIBOR or a base rate, plus an applicable margin (3.25% for LIBOR, 2.25% for base rate).
- 6The facility is secured by a first priority security interest in substantially all of Cheniere Energy's assets, excluding equity interests in Cheniere CCH HoldCo II, LLC.
- 7Key conditions for drawing funds include the completion of the fourth liquefaction train at Sabine Pass or Cheniere's unrestricted cash falling below $500 million.
Frequently Asked Questions
The primary purpose of the $750 million Revolving Credit Facility is to provide funding for Cheniere Energy's equity capital contributions to its Cheniere CCH HoldCo II, LLC subsidiary for the development of the Corpus Christi natural gas liquefaction facilities and related pipeline infrastructure.
Yes, up to 20% of the aggregate commitments under the Revolving Credit Facility can be used for Cheniere Energy's general corporate purposes. This availability for general corporate use may increase if undrawn commitments exceed the required contributions to the Corpus Christi project.
Advances under the facility are subject to customary conditions. Importantly, no funds can be drawn until either Cheniere's unrestricted cash falls below $500 million or the fourth liquefaction train at the Sabine Pass project achieves substantial completion.
The Revolving Credit Facility matures on March 2, 2021.