Freeport LNG Development, L.P. (“Freeport LNG”) and Westbourne Capital (“Westbourne”) today jointly announce the execution of definitive agreements under which Westbourne and its co-investors will exclusively provide an up to $1.025 billion mezzanine loan to a Freeport LNG subsidiary in support of Freeport LNG’s proposed fourth natural gas liquefaction train (“Train 4”) expansion efforts. This financing, combined with a contemplated bank facility, will be sufficient to provide 100% of the capital required for Train 4. This agreement follows Freeport LNG’s receipt of its FERC and DOE authorizations for the Train 4 project and its execution of a Train 4 fixed price EPC contract with KBR, Inc. (“KBR”). Under the terms of the Train 4 EPC contract, KBR will provide engineering, procurement, construction, commissioning and startup of the nominal 5 mtpa Train 4 and associated gas pre-treatment plant for the export of U.S. natural gas to international markets.
“We are happy to continue to progress our Train 4 expansion with an eye towards FID in the next several months,” said Michael Smith, Founder, Chairman and CEO, Freeport LNG. “The Westbourne led consortium have all been very supportive investors of Freeport in the past and we are excited to do more with them to grow the Company.”
“We are very pleased to extend our investment relationship with this world-class LNG project backed by an experienced management team and a strong stakeholder group,” added George Batsakis, Executive Director and Partner, Westbourne Capital. “We wish Freeport every success with the imminent commencement of operations and development of Train 4.”
Brownstein Hyatt Farber Schreck acted as Freeport LNG’s counsel and Allen and Overy acted as lenders’ counsel.
