Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.8.0.1
Debt
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
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.