| Debt |
DEBT
As of June 30, 2018 and December 31, 2017, our debt consisted of the following (in millions):
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June 30, |
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December 31, |
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2018 |
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2017 |
Long-term debt: |
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SPL |
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5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”) |
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$ |
2,000 |
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$ |
2,000 |
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6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) |
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1,000 |
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1,000 |
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5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”) |
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1,500 |
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1,500 |
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5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) |
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2,000 |
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2,000 |
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5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) |
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2,000 |
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2,000 |
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5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) |
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1,500 |
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1,500 |
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5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) |
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1,500 |
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1,500 |
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4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”) |
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1,350 |
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1,350 |
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5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) |
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800 |
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|
800 |
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Cheniere Partners |
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5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) |
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1,500 |
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1,500 |
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CQP Credit Facilities |
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1,090 |
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1,090 |
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Unamortized premium, discount and debt issuance costs, net |
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(194 |
) |
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(194 |
) |
Total long-term debt, net |
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16,046 |
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16,046 |
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Current debt: |
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$1.2 billion SPL Working Capital Facility (“SPL Working Capital Facility”) |
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— |
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— |
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Total debt, net |
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$ |
16,046 |
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$ |
16,046 |
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Credit Facilities
Below is a summary of our credit facilities outstanding as of June 30, 2018 (in millions):
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SPL Working Capital Facility |
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CQP Credit Facilities |
Original facility size |
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$ |
1,200 |
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$ |
2,800 |
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Less: |
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Outstanding balance |
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— |
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|
1,090 |
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Commitments prepaid or terminated |
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— |
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|
1,470 |
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Letters of credit issued |
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683 |
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|
20 |
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Available commitment |
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$ |
517 |
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$ |
220 |
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Interest rate |
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LIBOR plus 1.75% or base rate plus 0.75% |
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LIBOR plus 2.25% or base rate plus 1.25% (1) |
Maturity date |
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December 31, 2020, with various terms for underlying loans |
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February 25, 2020, with principal payments due quarterly commencing on March 31, 2019 |
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(1) |
There is a 0.50% step-up for both LIBOR and base rate loans beginning on February 25, 2019.
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Restrictive Debt Covenants
As of June 30, 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):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
Total interest cost |
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$ |
234 |
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$ |
224 |
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$ |
466 |
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$ |
435 |
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Capitalized interest |
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(50 |
) |
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(70 |
) |
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(97 |
) |
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(151 |
) |
Total interest expense, net |
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$ |
184 |
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$ |
154 |
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$ |
369 |
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$ |
284 |
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Fair Value Disclosures
The following table shows the carrying amount, which is net of unamortized premium, discount and debt issuance costs, and estimated fair value of our debt (in millions):
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June 30, 2018 |
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December 31, 2017 |
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Carrying
Amount
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Estimated
Fair Value
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Carrying
Amount
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Estimated
Fair Value
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Senior notes (1) |
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$ |
14,178 |
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$ |
14,733 |
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$ |
14,166 |
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$ |
15,485 |
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2037 SPL Senior Notes (2) |
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790 |
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|
837 |
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790 |
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|
871 |
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Credit facilities (3) |
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1,078 |
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1,078 |
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1,090 |
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1,090 |
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(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.
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(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. |
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(3) |
Includes SPL Working Capital Facility and 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.
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