Quarterly report pursuant to Section 13 or 15(d)

Debt (Tables)

v3.5.0.2
Debt (Tables)
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Schedule of Debt Instruments
As of June 30, 2016 and December 31, 2015, our debt consisted of the following (in thousands):
 
 
June 30,
 
December 31,
 
 
2016
 
2015
Long-term debt:
 
 
 
 
SPLNG
 
 
 
 
6.50% Senior Secured Notes due 2020 (“2020 SPLNG Senior Notes”) (1)
 
$
420,000

 
$
420,000

SPL
 
 
 
 
5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”), net of unamortized premium of $7,959 and $8,718
 
2,007,959

 
2,008,718

6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”)
 
1,000,000

 
1,000,000

5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”), net of unamortized premium of $6,029 and $6,392
 
1,506,029

 
1,506,392

5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”)
 
2,000,000

 
2,000,000

5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”)
 
2,000,000

 
2,000,000

5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”)
 
1,500,000

 

2015 SPL Credit Facilities
 
832,695

 
845,000

CTPL
 
 
 
 
$400.0 million Term Loan Facility (“CTPL Term Loan”), net of unamortized discount of zero and $1,429
 

 
398,571

Cheniere Partners
 
 
 
 
2016 CQP Credit Facilities
 
450,000

 

Unamortized debt issuance costs (2)
 
(173,159
)
 
(160,356
)
Total long-term debt, net
 
11,543,524

 
10,018,325

 
 
 
 
 
Current debt:
 
 
 
 
7.50% Senior Secured Notes due 2016 (“2016 SPLNG Senior Notes”), net of unamortized discount of $1,956 and $4,303 (3)
 
1,663,544

 
1,661,197

$1.2 billion SPL Working Capital Facility (“SPL Working Capital Facility”)
 

 
15,000

Unamortized debt issuance costs (2)
 
(1,287
)
 
(2,818
)
Total current debt, net
 
1,662,257

 
1,673,379

 
 
 
 
 
Total debt, net
 
$
13,205,781

 
$
11,691,704


 
(1)
Must be redeemed or repaid concurrently with the 2016 SPLNG Senior Notes under the terms of the 2016 CQP Credit Facilities if the obligations under the 2016 SPLNG Senior Notes are satisfied with borrowings under the 2016 CQP Credit Facilities.
(2)
Effective January 1, 2016, we adopted ASU 2015-03 and ASU 2015-15, which require debt issuance costs related to term notes to be presented in the balance sheet as a direct deduction from the debt liability, rather than as an asset, retrospectively for each reporting period presented. As a result, we reclassified $160.4 million and $2.8 million from debt issuance costs, net to long-term debt, net and current debt, net, respectively, as of December 31, 2015.
(3)
Matures on November 30, 2016. We currently anticipate satisfying this obligation with borrowings under the 2016 CQP Credit Facilities.

Schedule of Line of Credit Facilities
Below is a summary of our credit facilities outstanding as of June 30, 2016 (in thousands):
 
 
2015 SPL Credit Facilities
 
SPL Working Capital Facility
 
2016 CQP Credit Facilities
Original facility size
 
$
4,600,000

 
$
1,200,000

 
$
2,800,000

Outstanding balance
 
832,695

 

 
450,000

Commitments terminated
 
1,287,305

 

 

Letters of credit issued
 

 
237,270

 
7,500

Available commitment
 
$
2,480,000

 
$
962,730

 
$
2,342,500

 
 
 
 
 
 
 
Interest rate
 
LIBOR plus 1.30% - 1.75% or base rate plus 1.75%
 
LIBOR plus 1.75% or base rate plus 0.75%
 
LIBOR plus 2.25% or base rate plus 1.25% (1)
Maturity date
 
Earlier of December 31, 2020 or second anniversary of SPL Trains 1 through 5 completion date
 
December 31, 2020, with various terms for underlying loans
 
February 25, 2020, with principals due quarterly commencing on February 19, 2019
 
(1)
There is a 0.50% step-up for both LIBOR and base rate loans beginning on February 25, 2019.
Interest Income and Interest Expense Disclosure
Total interest expense consisted of the following (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Total interest cost
 
$
204,693

 
$
174,825

 
$
397,313

 
$
334,911

Capitalized interest
 
(132,694
)
 
(124,677
)
 
(281,862
)
 
(241,918
)
Total interest expense, net
 
$
71,999

 
$
50,148

 
$
115,451

 
$
92,993

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
The following table (in thousands) shows the carrying amount and estimated fair value of our debt:
 
 
June 30, 2016
 
December 31, 2015
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Senior Notes, net of premium or discount (1)
 
$
12,097,532

 
$
12,163,254

 
$
10,596,307

 
$
9,525,809

CTPL Term Loan, net of discount (2)
 

 

 
398,571

 
400,000

Credit facilities (2) (3)
 
1,282,695

 
1,282,695

 
860,000

 
860,000

 

(1)
Includes 2016 SPLNG Senior Notes, net of discount; 2020 SPLNG Senior Notes; 2021 SPL Senior Notes, net of premium; 2022 SPL Senior Notes; 2023 SPL Senior Notes, net of premium; 2024 SPL Senior Notes; 2025 SPL Senior Notes and 2026 SPL Senior Notes (collectively, the “Senior Notes”). The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of the Senior Notes and other similar instruments.
(2)
The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. 
(3)
Includes 2015 SPL Credit Facilities, SPL Working Capital Facility and 2016 CQP Credit Facilities.