Summary
Cheniere Energy, Inc. (LNG) announced the entry into a $1.25 billion Amended and Restated Revolving Credit Agreement, significantly increasing its borrowing capacity by $500 million. This expanded facility is primarily intended to fund the development of its Corpus Christi natural gas liquefaction and pipeline projects. A key aspect for investors is the introduction of a "Trigger Point" which, upon satisfaction of certain conditions related to project completion and financial metrics, will provide Cheniere with increased flexibility in making restricted payments and raising additional debt. The agreement also outlines the conditions for utilizing the facility for general corporate purposes, which will become more flexible post-Trigger Point. The facility is secured by substantially all of Cheniere's assets, and includes customary covenants, events of default, and interest rate structures tied to LIBOR or a base rate, plus applicable margins. The maturity date is set for December 13, 2022.
Key Highlights
- 1Cheniere Energy entered into a $1.25 billion Amended and Restated Revolving Credit Facility, an increase of $500 million.
- 2The facility is primarily designated to fund the development of the Corpus Christi natural gas liquefaction and pipeline projects.
- 3A "Trigger Point" mechanism is introduced, which, upon meeting specific project and financial criteria, will grant greater flexibility for restricted payments and incremental borrowings.
- 4The credit facility has a maturity date of December 13, 2022.
- 5Interest rates are variable, based on LIBOR or a base rate, plus an applicable margin determined by credit ratings.
- 6The facility is secured by a first priority security interest in substantially all of Cheniere's assets.
- 7The agreement includes customary covenants, representations, warranties, and events of default, with grace periods and materiality standards.