Magnolia LNG Secures $1.5-Billion Equity Commitment from Stonepeak

8 August 2017: Australia’s Liquefied National Gas Ltd. (LNGL) has secured a $1.5-billion equity commitment from Stonepeak Infrastructure Partners for its 8-MMt/y Magnolia liquefaction project in Lake Charles, Louisiana, it said July 5. The $1.5 billion is being supplied in a bespoke transaction that takes the form of redeemable preferred interest (RPI) in the project. Stonepeak will make the $1.5 billion equity available at financial close when the project financing agreements are signed with lenders. The $1.5 billion accounts for all of the equity for the project and, given its estimated cost of around $6 billion, it suggests that a debt/equity structure of 75/25 is being targeted in the project finance structure. This would mean that Magnolia LNG would have to raise around $4.5 billion in debt, most probably from banks in a manner similar to the financings arranged for the Cheniere and Freeport LNG projects.

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