Sabine Pass closes on $1.2 billion working capital credit agreement

By Tali Rackner

Norfolk, Va., Sept. 11 – Sabine Pass Liquefaction, LLC closed on a $1.2 billion amended and restated senior working capital revolving credit and letter of credit reimbursement agreement on Sept. 4, 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.

The entire amount of the working capital facility is available for the issuance of letters of credit for the purchase, transportation and storage of natural gas, with a $460 million sublimit for letters of credit for funding any debt service reserve account and a $200 million sublimit for letters of credit for other working capital and general corporate purposes.

Working capital loans may be made in an amount up to $740 million for the purchase, transportation and storage of natural gas, except that up to $200 million may be used for other working capital and general corporate purposes.

Swingline loans may be made in an amount up to the lesser of $25 million and the total unused amount of the working capital sublimit. The swingline sublimit is part of, and not in addition to, the working capital sublimit.

Loans will bear interest at Libor plus 175 basis points. There is a 70 bps commitment fee and a 175 bps letter-of-credit fee on the undrawn portion of all letters of credit.

The working capital facility matures on Dec. 31, 2020 and letter-of-credit loans have a term of up to one year. Swingline loans terminate upon the earliest of (a) the maturity or earlier termination of the facility; (b) the date 15 days after such swingline loan is madel and (c) the first borrowing date for a working capital loan or swingline loan occurring at least three business days following the date such swingline loan was made.

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 and placing into operation up to six liquefaction trains adjacent to the Sabine Pass LNG terminal in Cameron Parish, La., with a nominal production capacity each of about 4.5 million tons per year.

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

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