Cheniere Partners Closes $3.6B Credit Facility for Sabine Pass Liquefaction Project

abarrelfullabarrelfull wrote on 01 Aug 2012 07:10
Tags: cheniere lng n-america usa

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Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) announced today that Sabine Pass Liquefaction, LLC ("Sabine Liquefaction") closed on a credit facility ("Credit Facility") that will be used to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass liquefaction project (the "Liquefaction Project"). The Credit Facility was upsized to an aggregate $3.6 billion and is held by a syndicate of eleven joint lead arrangers and ten additional banks and financial institutions. The closing of the Credit Facility completes the debt financing necessary to construct the first two trains of the Liquefaction Project.

As previously announced, our Board of Directors has made a positive final investment decision ("FID") for the development and construction of the first two liquefaction trains subject to the closing of the debt financing, funding of the initial equity investment by Blackstone Energy Partners L.P., Blackstone Capital Partners VI L.P., and certain affiliates (collectively, "Blackstone"), and funding of the remaining equity investment by Cheniere Energy, Inc. ("CEI"). Cheniere Partners has now completed the debt financing and has received the remaining $333 million of funding through the purchase of 22.2 million Class B units by CEI. Cheniere Partners will issue a full notice to proceed to Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel") upon the receipt of initial funding from Blackstone.

The Credit Facility will mature on the earlier of July 31, 2019 or the second anniversary of the Liquefaction Project completion date. The interest rate is LIBOR plus 350 basis points during construction and then steps up to LIBOR plus 375 basis points during operation. Sabine Liquefaction, the borrower under the Credit Facility, will maintain interest rate protection agreements with respect to at least 75% of its senior secured debt.

Société Générale acted as sole and exclusive financial advisor to Sabine Liquefaction in connection with the Credit Facility.

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