Moody’s rates GNL Quintero notes Baa2

Moody's Investors Service said it assigned a Baa2 foreign currency senior unsecured rating to the proposed issuance of up to $1,104,000,000 of 15-year senior unsecured notes by GNL Quintero SA (Regas Co.) due in 2029.

The notes will be fully amortizing following a seven-year grace period that is scheduled to expire mid-2021.

The outlook is stable.

Proceeds will be largely used to repay the outstanding balance of around $900 million under GNL Quintero's project finance bank credit facility as well as the associated costs that are expected to arise in connection with the unwinding of the related interest rate swap agreement.

"The Baa2 senior unsecured rating reflects the critical importance of GNL Quintero's Liquefied Natural Gas (LNG) infrastructure to Chile given that it currently represents the main source of natural gas for the country's central area where around 92% of the Chilean population resides and 85% of the Gross Domestic Product is generated," Moody's vice president Natividad Martel said in a news release.

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