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Freeport LNG Investments Refinancing

Model Audit

9th November 2021

DWPF provided model audit advice to Freeport LNG on the refinancing of existing debt through the issuance of a USD 1.187 billion term loan B.


The senior secured loan is assigned a rating of ‘B+’/’RR3’. The rating reflects the stable distributions from three operating liquified natural gas (LNG) companies, each financed independently but operating as a single LNG complex. FLNGI’s debt is structurally subordinated to debt at the LNG operating and intermediate holding company, and is also subject to significant refinance risk.


The dividends are supported by a stable revenue stream generated from tolling-style agreements with investment-grade counterparties that bear all-natural gas supply and most cost risks. The ratings reflect the risk that the sole revenue source, the dividend from the holding company, is subject to a lock-up test in addition to FLNGI’s high leverage.