LNG 0.00% 4.3¢ liquefied natural gas limited

I don’t quite get some parts of the agreement, and hope anyone...

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  1. 115 Posts.
    I don’t quite get some parts of the agreement, and hope anyone could kindly help to understand it:

    So, for the $1.5bn funding from Stonepeak to LNG;

    • - During construction, fixed coupon with pay-in-kind provisions (shares?) are paid to Stonepeak;

    Regarding the repayment to Stonepeak, it’s either:

    • - Redeemable preferred interests from financial close having a 12 years tenor (like a 12 years of mortgage?)
    • - Or, Redeemable in full three years following commercial operations – (a lump sum payment including interests?);

    Seems at this stage we don’t know what is the percentage of interests will be paid to Stonepeak? It sounds very similar to a debt obligation but I don’t know if it’s often a cheaper option for the company?
 
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