Published on 1/10/2023 in the Prospect News High Yield Daily.
New Issue: Venture Global Calcasieu Pass sells $1 billion 6¼% seven-year secured notes at par
By Paul A. Harris
Portland, Ore., Jan. 10 – Venture Global Calcasieu Pass, LLC priced a $1 billion issue of seven-year senior bullet notes (B2/BB+) at par to yield 6¼% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 6 3/8% area. Initial guidance was in the 6 5/8% area.
The deal was five-times oversubscribed at 1 p.m. ET on Tuesday, a sellside source said, adding that there was price sensitivity among investors, some of whom began pulling out when talk dropped below 6 3/8%.
Reverse inquiry was 1.5-times the deal size, a trader said.
Lead left bookrunner RBC Capital Market, LLC will bill and deliver. Joint active bookrunners were BofA Securities, Inc. and Mizuho Securities USA LLC. Joint bookrunners were BBVA Securities Inc., CIT Capital Securities LLC, Credit Agricole Securities (USA) Inc., DZ Financial Markets LLC, Goldman Sachs & Co. LLC, ICBC Standard Bank plc, ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Natixis Securities Americas LLC, Nomura Securities International, Inc., Raymond James & Associates, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., Academy Securities, Inc., Loop Capital Markets LLC and R. Seelaus & Co., LLC.
The Arlington, Va.-based LNG producer and exporter plans to use the proceeds to prepay certain amounts outstanding under its credit facilities and to pay certain hedge termination costs in connection with the prepayment of the term loans.
| Issuer: | Venture Global Calcasieu Pass, LLC
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| Amount: | $1 billion
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| Issue: | Senior secured notes
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| Maturity: | Jan. 15, 2030
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| Left bookrunner: | RBC Capital Markets, LLC (bill and deliver)
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| Joint active bookrunners: | BofA Securities, Inc. and Mizuho Securities USA LLC
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| Joint bookrunners: | BBVA Securities Inc., CIT Capital Securities LLC, Credit Agricole Securities (USA) Inc., DZ Financial Markets LLC, Goldman Sachs & Co. LLC, ICBC Standard Bank plc, ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Natixis Securities Americas LLC, Nomura Securities International, Inc., Raymond James & Associates, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., Academy Securities, Inc., Loop Capital Markets LLC and R. Seelaus & Co., LLC
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| Coupon: | 6¼%
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| Price: | Par
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| Yield: | 6¼%
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| Spread: | 256.9 bps
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| Call protection: | Callable on and after Oct. 15, 2029 at par; otherwise non-callable
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| Trade date: | Jan. 10
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| Settlement date: | Jan. 13
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| Ratings: | Moody's: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6 3/8% area
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| Marketing: | Drive-by
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