Summary
Cheniere Energy, Inc. (LNG), through its indirect wholly-owned subsidiary Cheniere Corpus Christi Holdings, LLC (CCH), announced a significant financing arrangement on October 11, 2019, with the execution of a Note Purchase Agreement. CCH and its subsidiaries, acting as guarantors, will issue and sell $475 million in aggregate principal amount of 3.925% Senior Secured Notes due 2039 to certain investment accounts managed by BlackRock Real Assets and MetLife Investment Management. This private placement of notes is intended to refinance a portion of CCH's outstanding term loans, thereby strengthening its balance sheet and improving its debt structure. The notes will be senior secured obligations of CCH, guaranteed by its domestic subsidiaries, and will feature a 15-year weighted average life with amortization payments commencing in June 2027. Investors should note the resale restrictions on the notes for U.S. persons for the first 12 months post-issuance.
Key Highlights
- 1Cheniere Corpus Christi Holdings (CCH), a subsidiary of LNG, entered into a Note Purchase Agreement to issue $475 million in 3.925% Senior Secured Notes due 2039.
- 2The notes are being sold on a private placement basis to accounts managed by BlackRock Real Assets and MetLife Investment Management.
- 3Proceeds from the note issuance will be used by CCH to repay a portion of its outstanding term loans.
- 4The notes will be senior secured obligations of CCH and guaranteed by all of its existing and future domestic subsidiaries.
- 5The notes will have a 15-year weighted average life, with amortization payments delayed until June 2027.
- 6There are resale restrictions for U.S. persons on the notes for 12 months following issuance, with certain exceptions.