17 Nov, 2021

Venture Global prices upsized secured bonds at par to yield 3.875%; terms

Venture Global Calcasieu Pass LLC has placed a $1.25 billion tranche of 12-year senior secured bonds at the tight of narrow price guidance, according to market sources. The offering was boosted from $750 million at initial pitch. Joint active bookrunners were J. P. Morgan (B&D), BofA Securities and RBC Capital Markets.

The deal was marketed to refinance a portion of the company's senior secured construction loan, pay transaction fees and expenses and pay swap breakage costs.

Venture Global Calcasieu Pass supplies and exports liquefied natural gas. The company operates as a subsidiary of Venture Global LNG.

Venture Global Calcasieu Pass also tapped the bond market in July. The deal was finalized as $1.25 billion each of 3.875% senior secured notes due August 2029 and 4.125% senior secured notes due August 2031. The 2029 paper closed yesterday's session yielding 3.39% and the 2031 maturity yielding 3.46%, trade data show.

Terms:

Issuer Venture Global Calcasieu Pass LLC
Ratings BB/Ba3
Amount $1.25 billion
Issue Senior secured notes (144A/Reg S for life)
Coupon 3.875%
Price 100
Yield 3.875%
Spread T+227
Maturity Nov. 1, 2033
Call Non-call life (par call six months prior to maturity)
Trade (date) Nov. 17, 2021
Settle Nov. 22, 2021 (T+3)
Joint active bookrunners JPM (B&D)/BAML/RBC
Joint bookrunners GS/ICBC/ING/Mizuho/MS/Natixis/Nomura/Santander/Scotia/SMBC
Price talk 3.875%-4%; 4.00%-4.25% initial price thoughts
Notes Upsized from $750 million; make-whole at T+50 prior to May 1, 2033; change of control put at 101%.