Bank of China contributes $72.81 million USD to the $615.25 million USD term loan tranche of a $680.25 million USD syndicated loan for the Midship Pipeline Project (Linked to Record ID#107296)

Project narrative

On March 28, 2019, financial close was reached on a deal in which a syndicate of nine banks — including the New York Branch of Bank of China (BOC) — entered into a $680.25 million USD syndicated senior secured credit facilities agreement with Midship Pipeline Company, LLC — a Delaware-incorporated special purpose vehicle (SPV) and joint venture indirectly owned by Cheniere Energy, Inc., a Delaware-incorporated American liquefied natural gas (LNG) company and major exporter headquartered in Houston, Texas and listed on NYSE American (50% equity stake) and funds and accounts managed by EIG Global Energy Partners, LLC, a Delaware-incorporated American private equity firm energy and industry capital financier (50% equity stake) — for the Midship Pipeline Project. This loan was divided into three tranches: a $615.25 million USD term loan tranche (also known as the construction loan facility); a $25.00 million USD working capital revolving facility tranche; and a $40.00 million USD letter of credit tranche. This loan carried a maturity period of 11 years and five months (~11.353 years) and a final maturity date of August 1, 2030. The term loan included a cash sweep mechanism towards the backend of the repayment profile to mitigate and deleverage it if additional contracts are not obtained. BOC contributed $72.81 million USD to the $615.25 million USD term loan tranche, as captured by Record ID#107295. In addition to BOC, the following lenders contributed the respective amounts to the loan syndicate: Commonwealth Bank of Australia ($32.80 million USD), Crédit Agricole Corporate and Investment Bank (CACIB) ($72.81 million USD), ING Capital LLC ($72.81 million USD), the New York Branch of Korea Development Bank (KDB) ($72.81 million USD), National Australia Bank Limited (NAB) ($72.81 million USD), Natixis ($72.81 million USD), Société Générale S.A. (SocGen) ($72.81 million USD), and Sumitomo Mitsui Banking Corporation (SMBC) ($72.81 million USD). Eight lenders, including BOC, contributed $3.13 million USD to the $25 million USD working capital revolving facility tranche, as captured by Record ID#107296. In addition to BOC, the following lenders contributed the respective amounts to the loan syndicate: CBA, CACIB, ING Capital, NAB, Natixis, SocGen, and SMBC. SocGen served as joint lead arranger and administrative agent. The New York Branch of BOC, CBA, CACIB, ING Capital, the New York Branch of KDB, NAB, and SMBC served as mandated lead arrangers. In addition to the debt financing, EIG Global Energy Partners made a $500 million USD equity investment in June 2017. The proceeds of the facilities were to be used by the borrower to fund a portion of the cost of the development, construction, and placing into service of, to fund working capital requirements of, and for related general corporate purposes for the Midship Pipeline, a 312.9 kilometer-long (194.42705 miles) 36-inch diameter main natural gas pipeline stretching from the Okarche Procession Plant in Okarche, Kingfisher County, Oklahoma and terminating at interconnections with existing interstate natural gas pipelines near Bennington, Bryan County, Oklahoma, with a capacity of 1,440,000 dekatherms per day of natural gas. The new-built facilities included three mainline compressor stations, seven receipt meter stations/taps, four delivery meters, and two laterals. Gas was brought from the SCOOP and STACK gas production regions of the Anadarko Basin and transported towards the Gulf Coast and Southwest markets, such as the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana, to a liquefied natural gas (LNG) facility for export to Asia. In May 2017, Midship filed its Application for a Certificate of Public Convenience and Necessity with the U.S. Federal Energy Regulatory Commission (FERC) for authorization to construct and operate the pipeline. In February 2018, FERC issued a Draft Environmental Impact Statement (DEIS), which found that the project would contribute significantly, via downstream end-use of the products transported by it, to the emission of Greenhouse Gases (GHGs) and contribute to climate change. In August 2018, FERC approved the project. In February 2019, FERC issued a final notice to proceed. On September 6, 2019, the FERC docket was amended to reflect a change in the project, which had its capacity reduced from 1.14 million dekatherms per day to 1.1 million dekatherms per daily. On March 1, 2019 Midship Pipeline Company issued Notice to Proceed to Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC, and Cenergy, LLC. The project was expected to be placed into service by the end of 2019. Pipeline operations began in April 2020.