Dominion secures commitments for $3 billion Cove Point loan

US LNG operator Dominion Energy has secured commitments totaling $3 billion from over 20 lenders for its Cove Point term loan facility.

The three-year, non-amortizing facility is expected to close and fund later this month.

Initial drawn pricing for the term loan is set at Libor plus 1.375%, according to a Dominion statement released on Tuesday.

Dominion intends to use the proceeds from the financing to reduce parent-level debt.

As a result, parent-level debt as a percentage of total company debt will fall by approximately 8 percent, representing significant progress toward achieving Dominion Energy’s credit objectives, it said.

Mark F. McGettrick, executive vice president and chief financial officer, said the company “is pleased with the strong interest among lenders to participate in this important financing which has resulted in very attractive terms.

“Today’s announcement represents another milestone toward successfully completing the previously announced credit improvement initiatives which demonstrate our commitment to a strong credit profile,” he said.

Worth mentioning, Dominion’s  Cove Point LNG export project in Lusby, Maryland, shipped the first commercial cargo in April this year.

The $4 billion Cove Point facility has a nameplate capacity of 5.25 mtpa.