Cheniere Energy increases revolving commitments to $1.25 billion

By Sarah Lizee

Olympia, Wash., Dec. 17 – Cheniere Energy, Inc. entered into an amended and restated revolving credit agreement on Thursday with Societe Generale as administrative agent, providing for $500 million of incremental commitments, lifting the total committed amount to $1.25 billion, according to an 8-K filing with the Securities and Exchange Commission.

Loans bear interest at Libor plus 175 basis points to 250 bps, based on credit ratings.

The revolver matures Dec. 13, 2022.

From and after the time at which some specified conditions are met, known as the trigger point, the company will have increased flexibility under the revolver to, among other things, make restricted payments and raise incremental commitments.

The revolver will be available to fund equity capital contributions to Cheniere CCH HoldCo II, LLC and its subsidiaries, as well as related fees and expenses, in connection with the development of the Corpus Christi natural gas liquefaction facilities and Corpus Christi natural gas pipeline and related facilities near Corpus Christi, Texas.

Subject to some conditions, loans in an amount of up to 20% of the total commitments may also be used for general corporate purposes.

A financial covenant requires the company to ensure at all times that the sum of its unrestricted cash and the amount of undrawn commitments under the revolver is at least equal to the lesser of 20% of total commitments and $200 million.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc. and SG Americas Securities, LLC are coordinating lead arrangers and joint lead arrangers. ABN AMRO Capital USA LLC, Bank of America, NA, Citibank, NA, Credit Suisse AG, Cayman Islands Branch, HSBC Bank USA, NA, ING Capital LLC, Intesa Sanpaolo SPA, New York Branch, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., Royal Bank of Canada, Sumitomo Mitsui Banking Corp., Canadian Imperial Bank of Commerce, New York Branch and Bank of Nova Scotia are also joint lead arrangers.

Cheniere is a Houston-based energy company focused primarily on LNG-related businesses.

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