Freeport LNG gets $4.56 billion of senior, mezzanine debt commitments

By Susanna Moon

Chicago, April 28 – Freeport LNG Expansion, LP said subsidiary FLNG Liquefaction 3, LLC closed about $4.56 billion of senior and mezzanine debt financing commitments.

Of the amount, about $3.64 billion of senior debt financing is being provided by a syndicate of 27 commercial banks under a seven-year mini-perm construction facility. About $925 million of equity financing is being provided through mezzanine debt financing.

The capital is required for the construction of the third train of Freeport LNG's natural gas liquefaction and liquefied natural gas loading facility on Quintana Island near Freeport, Texas, according to a company press release.

The construction cost for the combined three-train project is expected to be $12.5 billion, including owner's costs and interest during construction.

Another $3 billion of funds were raised for refinancing and acquisition costs associated with the existing liquefied natural gas import facility, letters of credit facilities and a special contingency fund, the company noted.

Full three-train operation is expected by the third quarter of 2019. Liquefied natural gas production from the first liquefaction train is expected in early 2018, with commercial operation of the first train expected to begin by the third quarter of 2018.

Macquarie Capital is the financial adviser. White & Case is the finance counsel.

Freeport LNG Expansion is a wholly owned subsidiary of Freeport LNG Development, LP, which owns and operates an liquefied natural gas regasification terminal located near Freeport, Texas.

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