Hunton & Williams represents lenders in Freeport LNG Train 1 financing

Hunton & Williams said it represented JBIC, Nippon Export and Investment Insurance and a group of commercial banks on a $4.369 billion senior secured project debt finance for the construction and operation of Train 1 of Freeport liquefaction facilities in Texas.

The Train 1 project will be constructed, operated and owned by Freeport LNG, Osaka Gas and Chubu Electric. Osaka Gas and Chubu Electric, two of Japan’s largest utilities, will offtake and export the full capacity of the Train 1 LNG production under long-term contracts. The Train 1 facilities are part of a planned three‐train LNG production and export facility being developed by Freeport LNG. The Train 1 debt and equity financing transactions closed and funded on November 25, 2014, concurrently with the Freeport LNG Train 2 debt and equity financing transactions. The transactions reportedly represent the largest fully non-recourse project construction financings to have ever occurred.

JBIC is contributing 70% of the Train 1 project debt financing, with the remaining 30% of project debt financing being provided under NEXI insurance cover by Mizuho Bank, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation, and ING Bank N.V.

The proposed three-train LNG production and export terminal facilities, which are an expansion of Freeport LNG’s existing LNG import terminal and regasification facility, are designed to provide an LNG export capacity of approximately 13.2 mmtpa.

The LNG production and export project is expected to add long-term support to the US shale and other natural gas-producing regions, including Texas and the Gulf Coast, and significant benefits for the state’s economic and employment growth.

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Press Release; Image: Freeport LNG