Société Générale acted as administrative agent on a $1.25 billion amended and restated revolving credit agreement for Cheniere Energy (CEI), a Houston-based energy company primarily engaged in LNG-related businesses.
According to the related 8-K filing, Bank of America, Credit Suisse Cayman Islands Branch, Goldman Sachs Bank, HSBC Bank, Mizuho Bank, Morgan Stanley Senior Funding, Royal Bank of Canada, Société Générale, Sumitomo Mitsui Banking Corporation, MUFG Bank, Citibank, ING Capital, The Bank of Nova Scotia, Houston Branch, JPMorgan Chase Bank, ABN AMRO Capital, Canadian Imperial Bank of Commerce, New York Branch and Intesa Sanpaolo, New York Branch participated as lenders and issuing banks on the facilities.
Goldman Sachs, Morgan Stanley Senior Funding and SG Americas Securities acted as coordinating lead arrangers.
The new revolver amends and restates CEI’s existing revolving credit facility, upsizing the incremental commitments to $500 million for a total committed amount of $1.25 billion, and will mature on December 13, 2022. It is secured by a first priority security interest in substantially all of the assets of CEI, including the equity interests in CEI’s direct subsidiaries.
Loans under the revolver will bear interest at a variable rate per annum equal to LIBOR or the base rate (the highest of the prime rate published in The Wall Street Journal, the federal funds rate plus 0.50%, and LIBOR for an interest period of one month plus 1.00%), plus the applicable margin. The applicable margin for LIBOR loans ranges from 1.75% to 2.50% per annum, and the applicable margin for base rate loans ranges from 0.75% to 1.50% per annum, based on the credit ratings then in effect assigned to loans under the revolver. Interest on LIBOR loans is due and payable at the end of each LIBOR period, and interest on base rate loans is due and payable at the end of each calendar quarter.
Should certain specified conditions be met, CEI will have increased flexibility under the revolver to, among other things, make restricted payments and raise incremental commitments.
The revolver also contains a financial covenant requiring CEI to ensure at all times that the sum of its unrestricted cash and the amount of undrawn commitments under the facility is at least equal to the lesser of 20% of aggregate commitments under the revolver or $200 million.
CEI plans to use the facility to fund equity capital contributions to Cheniere CCH HoldCo II and its subsidiaries, as well as related fees and expenses, in connection with the development of its Corpus Christi, TX, natural gas liquefaction facilities and natural gas pipeline and related facilities.