Summary
Cheniere Energy, Inc. (LNG), through its subsidiary Sabine Pass Liquefaction, LLC (SPL), announced the closing of a new $1.2 billion Working Capital Revolving Credit and Letter of Credit Reimbursement Agreement on March 19, 2020. This facility replaces a previous agreement and is designed to provide liquidity for various corporate needs, including refinancing existing debt, covering fees and expenses, meeting gas purchase obligations, and general corporate purposes. The agreement offers flexibility with the ability to request up to an additional $800 million in commitments and matures on March 19, 2025. The new Working Capital Facility is secured by substantially all of SPL's assets and a pledge of its membership interests, providing lenders with a first priority lien. The terms include customary covenants, mandatory prepayments under specific conditions, and events of default. This refinancing and enhanced credit facility are crucial for maintaining SPL's operational and financial flexibility, particularly during a period of economic uncertainty.
Key Highlights
- 1Cheniere subsidiary, Sabine Pass Liquefaction (SPL), closed a new $1.2 billion Working Capital Revolving Credit and Letter of Credit Reimbursement Agreement on March 19, 2020.
- 2The facility replaces an existing senior working capital agreement dated September 4, 2015.
- 3Funds from the new facility can be used for refinancing, fees and expenses, gas purchase obligations, and general corporate purposes.
- 4The agreement allows for incremental commitments of up to $800 million, providing significant flexibility.
- 5The Working Capital Facility has a maturity date of March 19, 2025.
- 6The new facility is secured by a first priority lien on substantially all of SPL's assets and a pledge of its membership interests.
- 7Customary covenants, mandatory prepayments, and events of default are included in the agreement.