Published on 10/19/2023 in the Prospect News High Yield Daily.
New Issue: Venture Global LNG prices $4 billion secured notes in two tranches
By Paul A. Harris
Portland, Ore., Oct. 19 – Venture Global LNG Inc. priced $4 billion of senior secured notes (BB/BB) in two tranches on Thursday, according to market sources.
A $2.5 billion tranche of 5.25-year bullet notes priced at par to yield 9½%.
The yield came at the wide end of the 9¼% to 9½% price talk. Early guidance was 8¾% to 9%.
A $1.5 billion tranche of callable 9 7/8% 8.25-year notes priced at 99.214 to yield 10%. The yield printed at the wide end of the 9¾% to 10% yield talk. Early guidance was 9¼% to 9½%.
Demand was heard to be $4.75 billion across both tranches but was also heard to have been heavily tiered, a bond trader said.
The notes in both tranches traded below issue prices ahead of the Thursday close, the source added, spotting the new 9½% secured notes due 2029 at 99½ bid, 99¾ offered, versus the par issue price, while the 9 7/8% notes due 2032 were 98¼ bid, 98¾ offered, versus the 99.214 issue price.
The Arlington, Va.-based LNG producer plans to use the proceeds to pay off its commodities term loan, with the remainder to be used for general corporate purposes.
| Issuer: | Venture Global LNG Inc.
|
| Amount: | $4 billion
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| Issue: | Senior secured notes
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| Joint lead bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.
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| Joint bookrunners: | Santander US Capital Markets LLC, ING Financial Markets LLC, Scotia Capital (USA) Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc., MUFG Securities Americas Inc., ICBC, Deutsche Bank Securities Inc., BBVA Securities Inc., Natixis Securities Americas LLC and Wells Fargo Securities LLC
|
| Trade date: | Oct. 19
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| Settlement date: | Oct. 24
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| Ratings: | S&P: BB
|
| Fitch: BB
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Roadshow
|
|
|
| 5.25-year notes
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| Amount: | $2.5 billion
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| Maturity: | Feb. 1, 2029
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| Coupon: | 9½%
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| Price: | Par
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| Yield: | 9½%
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| Spread: | 453 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2028, then callable at par, otherwise non-callable
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| Price talk: | 9¼% to 9½%
|
|
|
| 8.25-year notes
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| Amount: | $1.5 billion
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| Maturity: | Feb. 1, 2032
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| Coupon: | 9 7/8%
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| Price: | 99.214
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| Yield: | 10%
|
| Spread: | 500 bps
|
| First call: | Feb. 1, 2027 at 104.938
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| Price talk: | 9¾% to 10%
|
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