Venture Global said its wholly owned subsidiary, Venture Global LNG, plans to raise $2.25 billion through senior secured notes due 2034 and 2036.
The company said the proceeds will be used to redeem all of the issuer’s outstanding 8.125% senior secured notes due 2028. Venture Global also said it will use cash on hand to cover the redemption premium and related fees and expenses.
The new debt would replace the 2028 notes with longer-dated securities. Venture Global did not say how the $2.25 billion would be split between the 2034 and 2036 maturities.
The notes will initially be unsecured by subsidiaries, but certain subsidiaries could later guarantee them if they incur or guarantee specified amounts of debt. Venture Global said that would not apply during any period when the notes are rated investment grade by designated rating agencies.
The new notes will also be secured on a first-priority basis by the same collateral backing the company’s existing notes and revolving credit facility, subject to permitted liens under the indenture. That security would also fall away during any investment-grade suspension period.
Venture Global said it has over 100 mtpa of capacity in production, construction or development. Its first three projects — Calcasieu Pass, Plaquemines LNG and CP2 LNG — are in Louisiana. As a result of these announcements, the company's shares have moved 6.52% on the market, and are now trading at a price of $12.825. For more information, read the company's full 8-K submission here.
