Chadbourne Advises Initial Purchasers in Connection with US$1.25 Billion of Senior Secured Notes Issued by FLNG Liquefaction 2, LLC

Chadbourne & Parke LLP advised the initial purchasers in connection with the offer and sale by FLNG Liquefaction 2, LLC (FLIQ2) of US$1.25 billion of 4.125% senior secured notes in an exempt offering under Rule 144A and Regulation S. 

FLIQ2 is the owner of Train 2 of the Freeport LNG Liquefaction export project in Quintana Island, Texas. Freeport LNG is constructing liquefaction infrastructure at the existing LNG receiving terminal to provide nominal export capacity of approximately 13.9 million metric tonnes per annum (mtpa) of LNG, which equates to processing approximately 2.0 Bcf/d of pipeline-quality natural gas (feed gas).

Following financial closing on Trains 1 and 2 in November 2014 and on Train 3 in April 2015, all three units are now under construction by a joint venture among CB&I, Inc., Zachry Industrial, Inc. and Chiyoda International Corporation. The first two trains are on schedule to commence operations by September 2018 and February 2019, respectively. The third train is expected to be in operation approximately six months following the second train, or in August 2019.

Net proceeds of the offering will be used by FLIQ2 to refinance a portion of the outstanding commercial bank credit facilities that closed in November 2014.

The Chadbourne team was led by partner Noam Ayali, assisted by partner Kessar Nashat, and included associates Jaime Huertas, Deanne Barrow and Justin Goushas. Tax, ERISA, environmental and energy regulatory expertise was provided by partner William Cavanagh and senior attorney Richard Wright, partner Marjorie Glover, counsel Susan Cowell, and counsel Kat Gamache, respectively. Partner Rohit Chaudhry and associate Brian Greene provided support on matters pertaining to the initial Freeport project financing, having led Chadbourne's work as lenders' counsel on the separate Train 2 and Train 3 commercial bank financings. 

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Originally prepared by Chadbourne & Parke. Chadbourne & Parke combined with Norton Rose Fulbright US LLP on June 30, 2017 and is now known as Norton Rose Fulbright US LLP.