By Paul A. Harris
Portland, Ore., July 29 – Venture Global Calcasieu Pass LLC, a unit of Venture Global LNG, Inc., priced an upsized $2.5 billion of senior secured bullet notes (Ba3/BB) in two tranches on Thursday, according to market sources.
The deal, which was upsized from $1.5 billion, included a $1.25 billion tranche of eight-year notes that priced at par to yield 3 7/8%, tight to yield talk in the 4% area, and well inside of initial guidance in the 4½% area.
A $1.25 billion tranche of 10-year notes priced at par to yield 4 1/8%, on top of both yield talk and initial guidance that had the 10-year notes pricing 25 basis points behind the eight-year notes.
The deal, at its original $1.5 billion size, was mostly done in reverse inquiry, according to sources.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, Mizuho Securities USA Inc., Natixis Securities Americas LLC, Nomura Securities International Inc., RBC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and ICBC.
The Cameron, La.-based liquefied natural gas producer plans to use the proceeds, including the additional proceeds resulting from the $1 billion upsizing of the deal, to prepay certain amounts outstanding under its credit facilities and pay certain related breakage and hedge termination costs.
| Issuer: | Venture Global Calcasieu Pass, LLC
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| Amount: | $2.5 billion, increased from $1.5 billion
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| Securities: | Senior secured notes
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| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, Mizuho Securities USA Inc., Natixis Securities Americas LLC, Nomura Securities International Inc., RBC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and ICBC
|
| Trade date: | July 29
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| Settlement date: | Aug. 5
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| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
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|
|
| Eight-year notes
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| Amount: | $1.25 billion
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| Maturity: | Aug. 15, 2029
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| Coupon: | 3 7/8%
|
| Price: | Par
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| Yield: | 3 7/8%
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| Spread: | 276 bps
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| Call protection: | Non-callable
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| Price talk: | 4% area
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|
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| 10-year notes
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| Amount: | $1.25 billion
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| Maturity: | Aug. 15, 2031
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| Coupon: | 4 1/8%
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| Price: | Par
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| Yield: | 4 1/8%
|
| Spread: | 287 bps
|
| Call protection: | Non-callable
|
| Price talk: | 25 bps behind the eight-year notes
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