8-KMaterial AgreementsExhibits & Filings

Cheniere Energy, Inc. 8-K Report, Material Agreement (Nov 3, 2006)

Filed November 3, 2006For Securities:LNG

Summary

This Form 8-K filing from Cheniere Energy, Inc. (LNG) on November 2, 2006, announces a significant financing event for its subsidiary, Sabine Pass LNG, L.P. The company entered into a Purchase Agreement on November 1, 2006, to issue and sell a substantial amount of senior secured notes. Specifically, Sabine Pass LNG, L.P. agreed to sell $550 million in 7.25% Senior Secured Notes due 2013 and $1.482 billion in 7.50% Senior Secured Notes due 2016 to Credit Suisse Securities (USA) LLC and other purchasers. This financing is a material development for Cheniere Energy, indicating progress in funding its Sabine Pass LNG terminal project, which is crucial for its future operations and revenue generation. Investors should note the aggregate principal amount of approximately $2.032 billion being raised, as this signifies a major capital infusion for the company's strategic initiatives.

Key Highlights

  • 1Cheniere Energy, Inc.'s subsidiary, Sabine Pass LNG, L.P., entered into a material definitive agreement on November 1, 2006.
  • 2The agreement is a Purchase Agreement with Credit Suisse Securities (USA) LLC, acting as Representative for the Initial Purchasers.
  • 3Sabine Pass LNG, L.P. will sell $550,000,000 aggregate principal amount of 7.25% Senior Secured Notes due 2013.
  • 4Sabine Pass LNG, L.P. will also sell $1,482,000,000 aggregate principal amount of 7.50% Senior Secured Notes due 2016.
  • 5The total aggregate principal amount of notes to be sold is approximately $2.032 billion.
  • 6The Purchase Agreement includes customary representations, warranties, indemnification, and contribution provisions.
  • 7The filing includes the Purchase Agreement as Exhibit 4.1.

Frequently Asked Questions

The primary purpose of this filing is to announce a material definitive agreement, specifically a Purchase Agreement for the sale of senior secured notes by Cheniere Energy's subsidiary, Sabine Pass LNG, L.P. This indicates a significant financing event for the company.

Cheniere Energy, through its subsidiary Sabine Pass LNG, L.P., is raising a total of approximately $2.032 billion by issuing senior secured notes. This includes $550 million in 7.25% Senior Secured Notes due 2013 and $1.482 billion in 7.50% Senior Secured Notes due 2016.

The parties involved are Sabine Pass LNG, L.P., a wholly-owned subsidiary of Cheniere Energy, Inc., and Credit Suisse Securities (USA) LLC, acting as the Representative of the Initial Purchasers.

The notes being issued are Senior Secured Notes. There are two tranches: $550 million with a 7.25% interest rate maturing in 2013, and $1.482 billion with a 7.50% interest rate maturing in 2016.