Summary
Cheniere Energy, Inc. (LNG) announced through its indirect wholly owned subsidiaries, Cheniere Corpus Christi Holdings, LLC and related entities, the execution of an Amended and Restated Working Capital Facility Agreement. This agreement significantly increases the total committed amount under the facility from approximately $350 million to $1.2 billion, providing an additional $850 million in commitments. The enhanced facility is crucial for funding working capital requirements associated with the development and operation of the Corpus Christi natural gas liquefaction and pipeline facilities. Funds can be used for gas purchase, transportation, storage expenses, debt service reserves, general corporate purposes (up to $250 million), and transaction fees. The facility matures on June 29, 2023, and is secured by substantially all assets of the Borrower and Guarantors on a pari passu basis. This expanded credit facility demonstrates Cheniere's commitment to advancing its strategic projects and provides enhanced financial flexibility. Investors should note the increased capacity, the specific uses of funds which are tied to operational and development needs of a key growth project, and the collateral backing the obligations. The inclusion of LIBOR or base rate plus a margin for interest, along with commitment and letter of credit fees, are standard for such facilities. The repayment structure includes an annual requirement to reduce outstanding principal to zero for five consecutive business days, offering a degree of deleveraging.
Key Highlights
- 1Cheniere Corpus Christi Holdings, LLC has entered into an Amended and Restated Working Capital Facility Agreement.
- 2The total committed amount under the facility has increased to $1.2 billion, an increase of approximately $850 million.
- 3The facility is intended for working capital needs related to the Corpus Christi natural gas liquefaction and pipeline facilities.
- 4Permitted uses include gas purchase/transportation/storage expenses, debt service reserves, and general corporate purposes (up to $250 million).
- 5The facility matures on June 29, 2023.
- 6The obligations are secured on a pari passu basis by substantially all assets of the Borrower and Guarantors.
- 7The facility requires an annual reduction of outstanding principal to zero for five consecutive business days.