| Debt |
DEBT
As of March 31, 2018 and December 31, 2017, our debt consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2018 |
|
2017 |
Long-term debt: |
|
|
|
|
SPL |
|
|
|
|
5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”), net of unamortized premium of $5 and $6 |
|
$ |
2,005 |
|
|
$ |
2,006 |
|
6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) |
|
1,000 |
|
|
1,000 |
|
5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”), net of unamortized premium of $5 and $5 |
|
1,505 |
|
|
1,505 |
|
5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) |
|
2,000 |
|
|
2,000 |
|
5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) |
|
2,000 |
|
|
2,000 |
|
5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) |
|
1,500 |
|
|
1,500 |
|
5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) |
|
1,500 |
|
|
1,500 |
|
4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”), net of unamortized discount of $1 and $1 |
|
1,349 |
|
|
1,349 |
|
5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) |
|
800 |
|
|
800 |
|
Cheniere Partners |
|
|
|
|
5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) |
|
1,500 |
|
|
1,500 |
|
2016 CQP Credit Facilities |
|
1,090 |
|
|
1,090 |
|
Unamortized debt issuance costs |
|
(197 |
) |
|
(204 |
) |
Total long-term debt, net |
|
16,052 |
|
|
16,046 |
|
|
|
|
|
|
Current debt: |
|
|
|
|
$1.2 billion SPL Working Capital Facility (“SPL Working Capital Facility”) |
|
— |
|
|
— |
|
|
|
|
|
|
Total debt, net |
|
$ |
16,052 |
|
|
$ |
16,046 |
|
Credit Facilities
Below is a summary of our credit facilities outstanding as of March 31, 2018 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
SPL Working Capital Facility |
|
2016 CQP Credit Facilities |
Original facility size |
|
$ |
1,200 |
|
|
$ |
2,800 |
|
Less: |
|
|
|
|
Outstanding balance |
|
— |
|
|
1,090 |
|
Commitments prepaid or terminated |
|
— |
|
|
1,470 |
|
Letters of credit issued |
|
706 |
|
|
20 |
|
Available commitment |
|
$ |
494 |
|
|
$ |
220 |
|
|
|
|
|
|
Interest rate |
|
LIBOR plus 1.75% or base rate plus 0.75% |
|
LIBOR plus 2.25% or base rate plus 1.25% (1) |
Maturity date |
|
December 31, 2020, with various terms for underlying loans |
|
February 25, 2020, with principal payments due quarterly commencing on March 31, 2019 |
|
|
(1) |
There is a 0.50% step-up for both LIBOR and base rate loans beginning on February 25, 2019.
|
Restrictive Debt Covenants
As of March 31, 2018, we and SPL were in compliance with all covenants related to our respective debt agreements.
Interest Expense
Total interest expense consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Total interest cost |
|
$ |
232 |
|
|
$ |
211 |
|
Capitalized interest |
|
(47 |
) |
|
(81 |
) |
Total interest expense, net |
|
$ |
185 |
|
|
$ |
130 |
|
Fair Value Disclosures
The following table shows the carrying amount and estimated fair value of our debt (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018 |
|
December 31, 2017 |
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
Senior notes, net of premium or discount (1) |
|
$ |
14,359 |
|
|
$ |
15,116 |
|
|
$ |
14,360 |
|
|
$ |
15,485 |
|
2037 SPL Senior Notes (2) |
|
800 |
|
|
838 |
|
|
800 |
|
|
871 |
|
Credit facilities (3) |
|
1,090 |
|
|
1,090 |
|
|
1,090 |
|
|
1,090 |
|
|
|
(1) |
Includes 2021 SPL Senior Notes, 2022 SPL Senior Notes, 2023 SPL Senior Notes, 2024 SPL Senior Notes, 2025 SPL Senior Notes, 2026 SPL Senior Notes, 2027 SPL Senior Notes, 2028 SPL Senior Notes and 2025 CQP Senior Notes. The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments.
|
|
|
(2) |
The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. |
|
|
(3) |
Includes SPL Working Capital Facility and 2016 CQP Credit Facilities. 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.
|
|