A PIK provision is the issue of further debt to meet the...

A PIK provision is the issue of further debt to meet the interest obligation (essentially capitalisation of interest). Interest then accrues on interest so to speak.

the preferred share arrangement is in substance a debt obligation but it is just unsecured because its legally a share. There is an obligation for the pref share to be redeemed at the end of 12 years or earlier at Magnolias option. The coupon= Stonepeaks IRR return- not much different to Stonepeak taking a % of the project equal to their required IRR return.

LNG retains 100% of the project- at the end of 12 years when stonepeak is repaid then LNG will own 100% of the operating cashflows- but it will need to somehow fund the redemption either through more debt or through project cashflows.

It would also be great for the Comapny to confirm that the FID bonuses are still in place for completion.