- Venture Global Plaquemines LNG, LLC successfully raises $2.5 billion through senior secured notes offering.
- The offering is divided into two tranches, with maturities in 2033 and 2035, carrying interest rates of 7.50% and 7.75%, respectively.
- Proceeds will refinance existing debt, enhancing financial flexibility.
Venture Global Plaquemines LNG, LLC (VGPL), a subsidiary of Venture Global, has closed a significant financial operation by issuing $2.5 billion in senior secured notes. This capital raise is structured into two equal series of $1.25 billion each. The first tranche, maturing on May 1, 2033, carries an interest rate of 7.50%, while the second tranche, maturing on May 1, 2035, carries a 7.75% interest rate.
The proceeds from these notes will be utilized to prepay existing senior secured first lien credit facilities and to cover expenses related to the offering. This strategic move is expected to enhance the company’s financial flexibility by refinancing its current debt obligations.
These notes are backed by a first-priority security interest in the assets that already secure VGPL's existing credit facilities. They are further guaranteed by an affiliate, Venture Global Gator Express, providing additional credit support. However, it’s important to note that these notes were not registered under the Securities Act of 1933, and cannot be offered or sold in the U.S. without appropriate registration or an exemption.
This capital market transaction represents a significant step for Venture Global in leveraging debt to support its liquefied natural gas infrastructure, showcasing its continued access to financial markets for large-scale project funding.
