Sabine Pass gets $325 million senior LOC and reimbursement agreement

By Tali Rackner

Norfolk, Va., April 25 - Sabine Pass Liquefaction, LLC closed on a $325 million five-year senior letter of credit and reimbursement agreement on Monday, according to an 8-K filing with the Securities and Exchange Commission.

Bank of Nova Scotia is the senior issuing bank and senior LC facility administrative agent, and Societe Generale is the common security trustee.

There is an unused fee of 75 basis points and a letter-of-credit fee of 250 bps.

If draws are made on any letters of credit, the amount of that draw will be deemed a senior LC loan, and the interest rate will be 200 basis points plus the higher of (a) the federal funds rate plus 50 bps and (b) Bank of Nova Scotia's prime rate. The company must pay the full amount of that senior LC loan by 5 p.m. ET on the next business day.

The facility will be used for the issuance of letters of credit on behalf of the company for certain working capital requirements related to developing, constructing and placing into operation four liquefaction trains adjacent to the Sabine Pass LNG terminal in Cameron Parish, La., with a nominal production capacity each of at least 182.5 million MMBtu per year, and facilities and services incidental thereto.

Sabine Pass is a Houston-based liquid natural gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.