Cheniere Energy, Inc. Announces Commitments for Term Loan Facility to Refinance Convertible Notes
June 16, 2020
Cheniere Energy, Inc. (NYSE American: LNG) announced today that it has obtained commitments from 17 financial institutions for an approximately $2.5 billion three-year delayed draw Senior Secured Term Loan at Cheniere Energy, Inc. (the “Cheniere Term Loan”), with the ability to add further commitments from additional financial institutions. Proceeds from borrowings under the Cheniere Term Loan, along with cash on the balance sheet, are expected to be used to (i) repay the existing 11.0% Convertible Senior Secured Notes due 2025 issued by Cheniere CCH HoldCo II, LLC, (ii) repay and/or repurchase the 4.875% Convertible PIK Notes due 2021 issued by Cheniere and (iii) pay related fees and expenses. The Cheniere Term Loan will rank pari passu with the existing $1.25 billion Cheniere Revolving Credit Facility.
Borrowings under the Cheniere Term Loan will bear interest at a rate of London Interbank Offered Rate (LIBOR) plus a margin based upon the applicable credit rating of the Cheniere Term Loan. The closing of the Cheniere Term Loan is expected to occur in June 2020.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected adjusted aggregate nominal production capacity of up to 45 million tonnes per annum of LNG operating or under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission.
Cheniere Energy, Inc.
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