By Paul A. Harris
Portland, Ore., Nov. 17 – Venture Global Calcasieu Pass LLC priced an upsized $1.25 billion issue of 12-year senior secured bullet notes (Ba3/BB) at par to yield 3 7/8% in a Wednesday drive-by, according to market sources.
The issue size increased from $750 million.
The yield printed at the tight end of the 3 7/8% to 4% yield talk. Early guidance was 4% to 4¼%.
The deal was driven to market on $1.15 billion of reverse inquiry, according to a trader, who added that it ended up playing to a $3 billion order book.
Venture Global attracted crossover investors, who believe there is a path to investment-grade ratings for the company, the trader said.
Some investors were in with reverse inquiry at 3 7/8%, the source said, adding that others dropped out at 3 7/8%.
The upside is the spread compression that will ensue should the credit become investment grade. The downside is the duration risk attached to a three-handle 12-year bullet, the trader said.
The Venture Global 3 7/8% notes due 2033 were trading at par 5/8 bid, par 7/8 offered at the Wednesday close.
J.P. Morgan Securities LLC, BofA Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.
Proceeds will be used to pay down the company's senior secured construction loan.
Venture Global Calcasieu Pass is developing a liquefied natural gas (LNG) export facility in Cameron Parish, La., south of the city of Lake Charles.
| Issuer: | Venture Global Calcasieu Pass LLC
|
| Amount: | $1.25 billion, increased from $750 million
|
| Maturity: | Nov. 1, 2033
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc. and RBC Capital Markets LLC
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 227 bps
|
| Call protection: | Non-callable
|
| Trade date: | Nov. 17
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3 7/8% to 4%
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
