Cheniere Energy Obtains Commitments for US$2.5 Billion Term Loan

By Deepak Sharma
June 18, 2020
a minute read
Oil & Gas Facilities

Houston-based LNG producer and exporter Cheniere Energy Inc. has received commitments from 17 financial institutions for a US$2.5 billion 3-year delayed draw Senior Secured Term Loan facility.

The borrowings under the Term Loan will be utilized to repay the company’s existing 11% Convertible Senior Secured Notes due 2025, to repay and/or repurchase 4.875% Convertible PIK Notes due 2021, and to pay associated fees and expenses.

In addition, the company stated that it has “the ability to add further commitments from additional financial institutions.”

Cheniere is currently the leading producer and exporter of LNG in the United States, with operations that span gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. The company owns one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities situated on the U.S. Gulf Coast, with expected adjusted aggregate nominal production capacity of up to 45 million tonnes per annum (MMtpa) of LNG operating or under construction.

The Term Loan facility will rank pari passu with the existing US$1.25 billion Cheniere Revolving Credit Facility, and will bear interest at a rate of LIBOR plus a margin based upon the applicable credit rating for the Term Loan.

The closing of the Term Loan facility is expected to occur in June.

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