By Abigail W. Adams
Portland, Me., May 19 – Venture Global LNG Inc. priced an upsized $4 billion two-tranche offering of five-year and eight-year senior secured notes on Friday, according to a market source.
The deal consisted of a $2 billion tranche of five-year senior secured notes (B1/BB/BB-) that priced at par to yield 8 1/8%.
Pricing came in the middle of talk for a yield of 8% to 8¼%, which comes on top of initial guidance.
The five-year notes are non-callable for two years.
The deal also consisted of a $2 billion tranche of eight-year secured notes that priced at par to yield 8 3/8%.
Pricing came at the midpoint of talk for a yield of 8¼% to 8½%, which was on top of initial guidance.
The eight-year notes carry three years of call protection.
The combined tranches had been expected to total $3.5 billion before the upsizing.
Both tranches are secured tranches. Previous reporting incorrectly indicated the offering would include an unsecured tranche.
J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S for life offering.
BofA Securities Inc., Goldman Sachs & Co. LLC, BBVA Securities Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Mizuho Securities USA Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Santander US Capital Markets LLC, SMBC Nikko Securities Americas Inc. and Wells Fargo Securities LLC are joint bookrunners.
Proceeds will be used to prepay outstanding borrowings under the company’s 2025 term loan.
Venture Global is an Arlington, Va.-based LNG producer and exporter.
| Issuer: | Venture Global LNG Inc.
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| Amount: | $4 billion
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| Issue: | Senior secured notes
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| Lead left: | J.P. Morgan Securities LLC
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| Joint bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, BBVA Securities Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Mizuho Securities USA Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Santander US Capital Markets LLC, SMBC Nikko Securities Americas Inc. and Wells Fargo Securities LLC
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| Trade date: | May 19
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| Ratings: | Moody’s: B1
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| S&P: BB
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Investor call
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| 2028 notes
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| Amount: | $2 billion
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| Maturity: | June 1, 2028
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| Coupon: | 8 1/8%
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| Price: | Par
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| Yield: | 8 1/8%
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| Spread: | 433 bps
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| First call: | Two years
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| Price talk: | Yield of 8% to 8¼%
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| 2031 notes
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| Amount: | $2 billion
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| Maturity: | June 1, 2031
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| Coupon: | 8 3/8%
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| Price: | Par
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| Yield: | 8 3/8%
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| Spread: | 471 bps
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| First call: | Three years
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| Price talk: | Yield of 8¼% to 8½%
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