Summary
Cheniere Energy, Inc. (LNG) reported a material definitive agreement through its subsidiary, Cheniere Energy Partners, L.P. (the "Partnership"), which successfully closed the sale of $1.5 billion in aggregate principal amount of 4.500% Senior Notes due 2029. These notes were issued on a private placement basis, not registered under the Securities Act of 1933. The issuance is intended to refinance existing debt or for general corporate purposes, impacting the company's leverage profile and interest expense. The transaction involves several key subsidiaries of Cheniere as guarantors, providing a collective assurance for the new debt. The notes are senior obligations of the Partnership and will accrue interest semi-annually. While currently unsecured, the notes may become secured under specific conditions related to the aggregate amount of secured indebtedness, shared equally with other senior secured obligations like the 2019 CQP Credit Facilities. The indenture includes provisions for optional redemption and covenants that limit certain corporate actions.
Key Highlights
- 1Cheniere Energy Partners, L.P. issued and sold $1.5 billion of 4.500% Senior Notes due 2029.
- 2The notes were sold through a private placement on September 12, 2019, in reliance on Section 4(a)(2) of the Securities Act.
- 3The new notes are senior obligations of the Partnership and are guaranteed by several of its subsidiaries.
- 4Interest on the notes is payable semi-annually at a rate of 4.500% per annum, with maturity in October 2029.
- 5The notes are currently unsecured but may become secured under certain conditions related to aggregate secured indebtedness.
- 6A Registration Rights Agreement was executed, requiring Cheniere to use commercially reasonable efforts to register the notes for exchange or resale.
- 7Cheniere Corpus Christi Holdings, LLC amended its indenture to maintain an asset sale covenant, providing additional protection to noteholders.