Chadbourne & Parke represented the lenders on the US$4.025 billion financing of Train Two of the Freeport LNG liquefaction and export project at Quintana Island near Freeport, Texas.
The Freeport LNG liquefaction project is an approximately US$11 billion project, making it the largest fully non-recourse construction financing project ever.
Train two financing
The train two financing closed on 25 November 2014 and includes US$4.025 billion in debt financing and US$1.3 billion of equity financing. The debt financing is being provided by 25 commercial banks and financial institutions under a seven-year mini-perm debt facility. The equity funding is being provided by IFM Investors.
Train two has a design capacity of 4.64 million tpy, is being constructed by CB&I, Inc. and Zachry Industrial, Inc, and has a take-or-pay liquefaction tolling agreements with BP Energy Company.
“We are delighted to have represented lenders on this landmark financing,” said Rohit Chaudhry, the lead Chadbourne partner on the transaction. “The project had a unique and complex structure, and the fact that we reached closing in a timely manner is a result of the tremendous effort and creativity of all of the parties involved.”
“Chadbourne's experience on past LNG transactions and in representing lenders in large complex projects gave the lenders a high degree of comfort with the project's financing documents,” commented Steve Greenwald, Senior Advisor at Credit Suisse, the Sole Global Arranger of the bank facilities.
“The leadership of Rohit Chaudhry and the Chadbourne team was an essential element of reaching a successful and timely close on Freeport LNG liquefaction financing. Chadbourne's ability to efficiently lead a multitude of financing parties through an extremely complex transaction is unsurpassed,” added John Tobola, Senior Vice President and General Counsel of Freeport LNG.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/27112014/chadbourne-represents-lenders-on-freeport-financing-1873/