What is the primary purpose of the $3.6 billion credit facility?

The $3.6 billion senior secured credit facility is primarily intended to fund a significant portion of the costs associated with developing, constructing, and operating two LNG trains at Cheniere's Sabine Pass LNG terminal in Cameron Parish, Louisiana.

What are the key terms of the Second Amended and Restated Terminal Use Agreement (Amended TUA)?

The Amended TUA is for a 20-year term, with options for eight additional five-year extensions. It secures 781,830,000 MMBtu of annual LNG delivery or receipt capacity for Sabine Pass Liquefaction, LLC (SPL). SPL is responsible for monthly reservation and operating fees, and bears certain additional taxes and regulatory costs. The agreement also allows for SPLNG to construct a sixth LNG storage tank for SPL's benefit.

What rights does Blackstone CQP Holdco LP gain through the Investors' Agreement?

Through the Investors' Agreement, Blackstone CQP Holdco LP, along with co-investors and Cheniere affiliates, are granted registration rights for common units received upon conversion of Class B Units. Furthermore, Blackstone has the right to appoint a director nominee to Cheniere's board of directors during the 'Investor Approval Period,' which is defined by specific ownership thresholds of the Partnership's units.

Are there any restrictions on the transfer of units or equity mentioned in the filing?

Yes, under the Investors' Agreement, Blackstone CQP Holdco LP and Cheniere and its affiliates have agreed not to transfer their Class B Units and Common Units received upon conversion for two years after the Initial Funding. Additionally, Cheniere has agreed not to transfer equity of the General Partner or entities providing services to the Partnership during the Investor Approval Period, except to a buyer of all such equity interests.

LNG 8-K: Material Agreements & Financial Events

Summary

Cheniere Energy, Inc. (LNG) reported on August 5, 2012, significant developments primarily related to the financing and operational agreements for its Sabine Pass Liquefaction Project. The company, through its subsidiary Sabine Pass Liquefaction, LLC (SPL), closed a substantial $3.6 billion senior secured credit facility. This facility is crucial for funding the development and construction of two Liquefied Natural Gas (LNG) trains at the Sabine Pass LNG terminal in Louisiana. The filing also details a Second Amended and Restated Terminal Use Agreement (Amended TUA) with Sabine Pass LNG, L.P. (SPLNG), securing 781,830,000 MMBtu of annual LNG delivery/receipt capacity for SPL. This agreement, spanning twenty years with extension options, solidifies SPL's capacity at the terminal. Additionally, Cheniere entered into an Investors' Agreement with Blackstone CQP Holdco LP and others, governing the resale of common units and providing Blackstone with board representation rights, among other provisions. The Investors' Agreement also includes a two-year lock-up period for certain units and restrictions on the transfer of equity in the general partner or service entities.

Key Highlights

1Closed a $3.6 billion senior secured credit facility to fund the development of two LNG trains at the Sabine Pass Liquefaction Project.
2Entered into a Second Amended and Restated Terminal Use Agreement (Amended TUA) for 20 years, securing significant LNG capacity at the Sabine Pass LNG terminal.
3Secured approximately 781,830,000 MMBtu of annual LNG delivery or receipt capacity, equivalent to about 2.0 billion cubic feet per day of regasification capacity.
4The Amended TUA includes provisions for potential construction of a sixth LNG storage tank.
5Entered into an Investors' Agreement with Blackstone CQP Holdco LP, which includes registration rights for common units and a two-year transfer restriction on certain Class B units.
6Blackstone CQP Holdco LP gains the right to appoint a director to Cheniere's board under certain conditions.
7SPL's obligations under the Amended TUA are guaranteed by Cheniere Energy Partners, L.P. for the initial 20-year term.

Cheniere Energy, Inc. 8-K Report, Material Agreement (Aug 6, 2012)

Summary

Key Highlights

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