Kirkland Represents Lenders on $3.4 Billion Train 3 Refinancing for Freeport LNG

Kirkland & Ellis advised lenders on an approximately $3.4 billion refinancing for Train 3 of the Freeport LNG facility, including a $181 million debt service reserve facility and a $50 million working capital facility. The financing closed on May 27, 2020.  The Joint Lead Arrangers were Canadian Imperial Bank of Commerce, New York Branch, Credit Agricole Corporate and Investment Bank, Industrial, Commercial Bank of China Limited, New York Branch, ING Capital LLC, Intesa Sanpaolo S.P.A., New York Branch, Mizuho Bank, Ltd., MUFG Bank, Ltd., Natixis New York Branch, Santander Bank, N.A., Société Générale and Sumitomo Mitsui Banking Corporation.   The Documentation Agents were Canadian Imperial Bank of Commerce, New York Branch, MUFG Bank, Ltd., Natixis, New York Branch, and Société Générale.  Eighteen banks participated in the financing. The proceeds of the financing will be used to (i) pay down the existing bank debt for Train 3 and hedge termination costs, (ii) pay for transaction costs and remaining costs for the completion, ownership, operation, and maintenance of the Train 3 facility, and (iii) the payment of dividends to the sponsors.

The Kirkland team was led by debt finance partners Brian Greene,  Rohit Chaudhry, Roald Nashi and Kelann Stirling and associates Mateo Aceves and Camila Bourguignon; with assistance from corporate partner Drue Santora and associate Mona Kwasnik; regulatory partner Brooksany Barrowes; environmental transactions partner Alexandra Farmer and associate James Dolphin; real estate partners John Goldman and Andrew Van Noord and associate Conrad Steele; tax partner Scott Cockerham; and asset finance and securitization partner Jeffrey O’Connor.