What is the primary purpose of the new credit facilities?

The $1.5 billion credit facility is primarily intended to finance the development and construction of Train 6 of the Sabine Pass Liquefaction Project and other related facilities. A portion can also be used for general corporate purposes.

What is the significance of the Final Investment Decision (FID) for Train 6?

The FID signifies that Cheniere's board has approved the project and committed the necessary capital to proceed with the development, construction, and operation of Train 6. This is a critical milestone for expanding liquefaction capacity.

What are the key terms of the credit facilities, such as interest rates and maturity?

Loans under the Term Facility bear interest at LIBOR plus 1.50% or base rate plus 0.50%. Loans under the Revolving Facility bear interest at LIBOR plus a range of 1.25% to 2.125% or base rate plus a range of 0.25% to 1.125%, depending on the Partnership's credit rating. The facilities mature on the fifth anniversary of the closing date, with principal repayment beginning on the fourth anniversary.

How are the credit facilities secured?

The CQP Credit Facilities are secured by a first priority lien on substantially all existing and future tangible and intangible assets and rights of the Partnership and its Subsidiary Guarantors, as well as equity interests in the Subsidiary Guarantors, subject to certain permitted encumbrances and excluded properties.

LNG 8-K: Material Agreements, Financial Events & More

Summary

Cheniere Energy, Inc. (LNG) filed an 8-K on June 3, 2019, announcing significant developments for its Sabine Pass Liquefaction Project. The company's subsidiary, Cheniere Energy Partners, L.P. (the Partnership), entered into a $1.5 billion credit facility consisting of a $750 million term loan and a $750 million revolving credit facility. This financing is intended to fund the development and construction of Train 6 of the liquefaction project and related facilities. The report also confirms that the Partnership made a final investment decision (FID) for Train 6 and issued a notice to proceed with construction. This move signals a key growth step for Cheniere, expanding its liquefaction capacity. The credit facilities are secured by substantially all assets of the Partnership and its subsidiary guarantors, with flexible terms including variable interest rates tied to LIBOR or base rates, and customary covenants and events of default. The company also provided updated corporate presentations and a press release, which are furnished as exhibits.

Key Highlights

1Cheniere Energy Partners, L.P. entered into a new $1.5 billion Credit and Guaranty Agreement (CQP Credit Facilities).
2The CQP Credit Facilities include a $750 million term loan and a $750 million revolving credit facility.
3Proceeds from the credit facilities will fund the development and construction of Train 6 of the Sabine Pass Liquefaction Project.
4The company announced a Final Investment Decision (FID) for Train 6 on May 29, 2019.
5A notice to proceed was issued to Bechtel for the construction of Train 6 on June 3, 2019.
6The credit facilities are secured by a first priority lien on substantially all assets of the Partnership and its Subsidiary Guarantors.
7The filing includes updated corporate presentations and a press release as furnished exhibits.

Cheniere Energy, Inc. 8-K Report, Material Agreement (Jun 3, 2019)

Summary

Key Highlights

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