Venture Global announced the closing of a $1.75 billion secured senior credit facility intended to strengthen the financial structure of its Calcasieu Pass liquefied natural gas (LNG) project, located in Louisiana.
Financing to optimize the cost of capital
The transaction was executed through its subsidiary Calcasieu Pass Funding, LLC, which formalized a Term Loan B within a structured credit facility. Part of the funds obtained were used to fully redeem the preferred interests previously issued to Stonepeak Bayou Holdings II LP.
In addition, the company noted that this refinancing significantly reduces the total cost of capital. It also improves the liquidity position and strengthens its balance sheet in a dynamic market environment.
Ongoing access to capital markets
According to Mike Sabel, CEO of Venture Global, the transaction confirms the company’s ability to access international financial markets efficiently.
In his remarks, the executive stated that this greater financial flexibility will enable progress on the company’s strategic priorities and support long-term value creation.
Support from global financial institutions
The closing of the facility included the participation of major financial institutions. Goldman Sachs acted as left lead arranger and transaction coordinator. Barclays, Natixis, and Wells Fargo participated as right lead arrangers and joint coordinators.
On the legal side, Latham & Watkins LLP advised Venture Global, while Skadden, Arps, Slate, Meagher & Flom LLP represented the arranging institutions.
A key player in the LNG market
Venture Global has established itself as one of the leading liquefied natural gas exporters in the United States. The company has more than 100 million tonnes per annum (MTPA) of capacity under development and in operation.
Its integrated business model covers the entire LNG value chain, from production to export. Among its most relevant assets are Calcasieu Pass, Plaquemines LNG, and CP2 LNG, all located on the U.S. Gulf Coast.
In parallel, the company is advancing carbon capture and storage initiatives, aligning its growth with sustainability trends within the energy sector.
Source: Venture Global
Photo: Shutterstock