Summary
Cheniere Energy, Inc. (LNG) has filed an 8-K/A amendment reporting on the issuance of $727 million in 4.80% Senior Secured Notes due December 31, 2039, by its indirect wholly-owned subsidiary, Cheniere Corpus Christi Holdings, LLC (CCH). These notes are secured by substantially all of CCH's and its guarantors' assets, providing a first-priority security interest. The issuance is part of a definitive agreement previously entered into with purchasers, as detailed in a prior Note Purchase Agreement. These notes feature a weighted average life of 15 years with deferred amortization until June 30, 2027, and are fully amortizing according to a fixed sculpted schedule with semi-annual principal and interest payments. The notes rank senior in right of payment to subordinated debt and equal to existing and future senior secured indebtedness of CCH. This move signifies a significant debt financing for Cheniere's Corpus Christi operations, aimed at bolstering its project development and operational capabilities.
Key Highlights
- 1Issuance of $727 million in 4.80% Senior Secured Notes by subsidiary Cheniere Corpus Christi Holdings, LLC (CCH).
- 2Notes mature on December 31, 2039, with a weighted average life of 15 years.
- 3Amortization is deferred until June 30, 2027; payments are semi-annual.
- 4Notes are secured by a first-priority security interest in substantially all assets of CCH and its guarantors (CCL, CCP, CCP GP).
- 5The notes are senior secured obligations, ranking pari passu with existing senior secured debt of CCH.
- 6Guarantees are provided by existing CCH subsidiaries and will extend to certain future domestic subsidiaries.
- 7The issuance is governed by an Indenture with customary covenants, including restrictions on indebtedness, investments, and asset sales.