What is the primary purpose of the newly secured credit facilities?

The primary purpose of the credit facilities is to finance the development and construction of Cheniere's major infrastructure projects. Specifically, the $5.9 billion for Sabine Pass Liquefaction, LLC (SPL) is designated for the first four LNG liquefaction trains at the Sabine Pass LNG terminal, and the $400 million for Cheniere Creole Trail Pipeline, L.P. (CTPL) is for capital expenditures on its Louisiana pipeline and general business purposes.

Who are the key lenders involved in these financing agreements?

For the Sabine Pass Liquefaction (SPL) facilities, lenders include Société Générale (as Commercial Banks Facility Agent and Trustee), The Export-Import Bank of Korea (KEXIM), and lenders under KSURE Covered Facility (facilitated by The Korea Development Bank). For the CTPL facility, Morgan Stanley Senior Funding, Inc. acts as the administrative agent, with The Bank of New York Mellon serving as the collateral and depositary bank.

What are the key terms and repayment structures for these credit facilities?

The SPL Credit Facilities mature on the earlier of May 28, 2020, or two years after project completion, with principal repayments in quarterly installments based on an 18-year amortization schedule, followed by a balloon payment. Loans bear variable interest rates (LIBOR or base rate) plus applicable margins. The CTPL Credit Facility matures on May 28, 2017, with principal repaid at maturity and bears variable interest rates plus applicable margins. Both facilities have covenants, restrictions, and customary events of default.

What is the significance of the notice to proceed for the third and fourth liquefaction trains?

The notice to proceed issued to Bechtel for the third and fourth liquefaction trains signifies that construction is officially commencing for these additional trains. This is a critical step in the project development, demonstrating progression beyond the initial trains and reinforcing Cheniere's commitment to expanding its liquefaction capacity.

LNG 8-K: Acquisitions & Dispositions, Material Agreements & More

Summary

Cheniere Energy, Inc. (LNG) announced significant financing milestones through its subsidiaries on May 28, 2013. Sabine Pass Liquefaction, LLC (SPL), a subsidiary of Cheniere Energy Partners, L.P., secured $5.9 billion in credit facilities to fund the development and construction of the first four liquefaction trains at its Sabine Pass LNG terminal. Concurrently, Cheniere Creole Trail Pipeline, L.P. (CTPL), another subsidiary, finalized a $400 million credit agreement for capital expenditures on its Louisiana pipeline. These agreements represent a substantial advancement in Cheniere's project financing, crucial for its expansion into the liquefied natural gas export market. The substantial debt financing indicates strong investor confidence and provides the necessary capital to progress its large-scale liquefaction projects, positioning the company for future growth and revenue generation from these infrastructure developments.

Key Highlights

1Sabine Pass Liquefaction, LLC (SPL) secured $5.9 billion in credit facilities for its liquefaction project.
2Cheniere Creole Trail Pipeline, L.P. (CTPL) secured a $400 million credit facility for pipeline development and general business purposes.
3The SPL credit facilities will fund the development and construction of the first four LNG trains at the Sabine Pass LNG terminal.
4The CTPL credit facility will fund capital expenditures for the 94-mile Louisiana pipeline.
5SPL issued a notice to proceed to Bechtel for the construction of the third and fourth liquefaction trains.
6The financing for SPL involves multiple credit facilities, including senior secured credit facilities, KEXIM and KSURE covered agreements, indicating diverse international and governmental financial institution involvement.
7The transactions closed on May 28, 2013, with a press release issued on May 29, 2013.

Cheniere Energy, Inc. 8-K Report, Material Agreement (May 29, 2013)

Summary

Key Highlights

Frequently Asked Questions