Freeport LNG finalizes terms of $1.187B term loan tight to talk

A Credit Suisse-led arranger group has finalized terms of the first-lien term loan for Freeport LNG Investments LLC, which was trimmed to $1.187 billion from $1.194 billion, according to sources. Recommitments are due today by noon ET.

Final pricing for the seven-year term loan is L+350, from L+400 at launch, with a 0.50% Libor floor and an OID of 99. Lenders are offered six months of 101 soft call protection.

At revised terms, the yield to maturity is 4.24%, compared to 4.76% under the original guidance.

Additional arrangers include CIBC, Crédit Agricole, ING, J.P. Morgan, MUFG, Natixis and Société Générale.

Rating agencies have assigned facility ratings of B+/B1/B+, with a 2 recovery rating from S&P Global Ratings and a 3 recovery rating from Fitch. Corporate ratings are B/B1/B, with a stable outlook on all sides.

Proceeds will be used to refinance existing debt. Financing will also include a $1.213 billion term loan A due 2026, according to S&P Global Ratings.

Freeport LNG Investments is a limited liability partnership that holds Michael Smith's limited partnership interests in Freeport LNG Development LP. Freeport LNG Development operates a natural gas liquefaction and liquefied natural gas export facility.