When looking at the debt funding, the important thing to remember is the predictability of cash flow. Magnolia will have a stable income stream, without currency or commodity risk. That's the attraction of the tolling agreements - they'll offer a regular fixed income stream (the comparison can be made to an infrastructure project, like a tollway).
This make debt funding relatively straight forward. Most major banks will have a Project Financing team specialising in financing deals like this. You can be assured that BNP Paribas will already be in discussions with other banks to syndicating the debt financing (they'll look at spreading the risk and taking the arranging fee).
LNG Price at posting:
69.5¢ Sentiment: Buy Disclosure: Held
