Summary
Cheniere Energy Partners, L.P. (a majority-owned subsidiary of Cheniere Energy, Inc.) announced on July 12, 2012, that it has secured firm financial commitments totaling approximately $3.4 billion for the development and construction of the first two liquefaction trains at its Sabine Pass LNG liquefaction project. This funding is primarily through an upsized Term Loan A Credit Facility, which replaces the previously planned Term Loan B syndication. The company also noted that, combined with previously announced equity commitments of $2 billion, the total project financing for these initial two trains now stands at approximately $5.4 billion. This development represents a significant step towards a final investment decision for the project. The company expects to close the Credit Facility by the end of July and intends to issue a notice to proceed to Bechtel once all conditions precedent, including regulatory approvals and financing completion, are met. The company has also postponed the purchase of the Creole Trail Pipeline to ensure financing for the liquefaction project is prioritized.
Key Highlights
- 1Cheniere Partners secured approximately $3.4 billion in firm financial commitments for the first two liquefaction trains at Sabine Pass.
- 2The funding is primarily through an upsized Term Loan A Credit Facility, replacing a prior Term Loan B plan.
- 3Total financing for Trains 1 & 2 now stands at approximately $5.4 billion, including $2 billion in equity commitments.
- 4The Credit Facility has a 7-year maturity with interest rates of LIBOR + 350 bps during construction and LIBOR + 375 bps during operations.
- 5The company expects to finalize loan documents and close the Credit Facility by the end of July 2012.
- 6A final investment decision and notice to proceed to Bechtel are anticipated upon meeting all conditions precedent.
- 7The planned purchase of the Creole Trail Pipeline has been postponed until after construction begins and financing is secured.