Venture Global to Raise $2.25 Billion Through Senior Secured Notes

By Bobby Samwell • Tuesday, June 02 11:05 • Permanent Link

Venture Global said June 1 it plans to raise $2.25 billion through senior secured notes due 2034 and 2036.

The company said the new debt would be used to redeem all of its 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 proposed refinancing replaces notes carrying an 8.125% coupon and due in 2028 with new secured notes maturing in 2034 and 2036, extending the company’s debt profile by 6 to 8 years.

The notes will initially be unsecured by subsidiaries, but Venture Global said certain subsidiaries could later guarantee them if they incur or guarantee specified amounts of debt. The notes will be secured on a first-priority basis by the same collateral backing the company’s existing notes and revolving credit facility.

Venture Global said the offering is for qualified institutional buyers under Rule 144A and that completion depends on market conditions. Following these announcements, the company's shares moved -0.48%, and are now trading at a price of $12.6187. Check out the company's full 8-K submission here.

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