Summary
Cheniere Energy, Inc. (LNG), through its subsidiary Sabine Pass Liquefaction, LLC (SPL), announced the closing of a $1.5 billion debt financing on June 14, 2016. This issuance consists of 5.875% Senior Secured Notes due 2026, sold via a private placement under Section 4(a)(2) of the Securities Act, Rule 144A, and Regulation S. These notes are senior secured obligations of SPL, ranking equally with existing senior indebtedness and effectively senior to unsecured debt up to the value of the collateral. The financing will mature on June 30, 2026, with semi-annual interest payments beginning December 31, 2016. The company has also entered into a Registration Rights Agreement, committing to file a registration statement for an exchange offer of these notes within 360 days, with potential penalties for non-compliance.
Key Highlights
- 1Cheniere Energy subsidiary, Sabine Pass Liquefaction (SPL), successfully closed a $1.5 billion offering of 5.875% Senior Secured Notes due 2026.
- 2The notes were issued on June 14, 2016, with a maturity date of June 30, 2026.
- 3The financing was conducted as a private placement under Section 4(a)(2) of the Securities Act and Rule 144A/Regulation S.
- 4The notes are senior secured obligations of SPL, with covenants that include limitations on additional indebtedness, investments, and dividends.
- 5SPL has agreed to register these notes for resale under a Registration Rights Agreement, with a deadline of 360 days post-issuance.
- 6The issuance represents a significant debt financing event for Cheniere's liquefaction project development.