Venture Global LNG to sell $4 billion secured notes in two tranches

By Paul A. Harris

Portland, Ore., Oct. 17 – Venture Global LNG Inc. plans to sell $4 billion of senior secured notes (//BB), according to market sources.

The deal includes a tranche of 5.25-year bullet notes with initial guidance of 8¾% to 9% and a tranche of 8.25-year notes with 3.25 years of call protection and initial guidance of 9¼% to 9½%.

Tranche sizes remain to be determined.

The deal is in the market with $1 billion of reverse inquiry, according to a sellside source, who added that if demand warrants, the company might come with a substantial upsize.

The offering launched on a Tuesday morning conference call with investors and is expected to price on Thursday but could be moved ahead to Wednesday, the sellsider said.

J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. are the joint lead bookrunners.

Santander US Capital Markets LLC, ING Financial Markets LLC, Scotia Capital (USA) Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc., MUFG Securities Americas Inc., ICBC, Deutsche Bank Securities Inc., BBVA Securities Inc., Natixis Securities Americas LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Arlington, Va.-based LNG producer plans to use the proceeds to pay off its commodities term loan, with the remainder to be used for general corporate purposes.

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