Cameron LNG to get up to $7.4 billion of 16-year loan facilities

By Jennifer Chiou

New York, Oct. 2 – Cameron LNG, LLC entered into documents for up to an initial aggregate amount of $7.4 billion of senior secured financing, according to an 8-K filing with the Securities and Exchange Commission.

The financing consists of a $2.5 billion loan facility agreement with Japan Bank for International Cooperation and Bank of Tokyo-Mitsubishi UFJ, Ltd. as loan facility agent, a $2 billion loan facility agreement with 15 commercial banks and Sumitomo Mitsui Banking Corp. as facility agent and a $2.9 billion loan facility agreement with 25 commercial banks and Mizuho Bank, Ltd. as facility agent.

The $2 billion loan facility will have insurance coverage provided by Nippon Export and Investment Insurance.

The financing coincides with the effective date of the Cameron LNG joint venture with Sempra Energy and its project partners.

On Aug. 6, Sempra Energy and its project partners, comprised of affiliates of GDF Suez SA, Mitsui & Co., Ltd. and Mitsubishi Corp., gave their respective final investment decision for the investment in the development, construction and operation of the natural gas liquefaction export facility at the terminal owned by Cameron LNG.

Upon effectiveness of the joint venture, the project partners were issued indirect equity interests in Cameron LNG in an aggregate of 49.8% and Cameron LNG ceased to be wholly owned or controlled by Sempra Energy, which now owns 50.2% of Cameron LNG.

The facility agreements provide senior secured term loans with a term of 16 years and a maturity date of July 15, 2030, the filing noted.

Proceeds will be used for the purposes of financing the cost of development and construction of the Cameron LNG project.

The weighted average all-in cost of the loans outstanding under the loan facility agreements is Libor plus 159 basis points prior to financial completion of the project and 178 bps following financial completion of the project.

Financial completion is anticipated to occur in the second half of 2019.

Cameron LNG also must make mandatory prepayments under the loan agreements.

Cameron LNG is a liquefied natural gas receipt terminal near the Gulf of Mexico in Hackberry, La. Sempra, a holding company for utility subsidiaries, is based in San Diego.

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