Summary
Cheniere Energy, Inc. (LNG) reported a material definitive agreement through its indirect wholly-owned subsidiary, Cheniere Corpus Christi Holdings, LLC (CCH), and its subsidiaries (Guarantors). On August 14, 2020, CCH entered into a Note Purchase Agreement to issue and sell $768.74 million in aggregate principal amount of 3.52% Senior Secured Notes due December 31, 2039. These notes are a private placement under Section 4(a)(2) of the Securities Act and will be senior secured obligations of CCH, guaranteed by its domestic subsidiaries. The primary purpose of this debt issuance is to refinance existing senior debt, unwind interest rate hedging instruments, and cover associated fees and expenses. The notes will be fully amortizing with a weighted average life of approximately 14 years, with amortization payments commencing in June 2027. This transaction aims to strengthen CCH's balance sheet by reducing existing debt obligations and optimizing its capital structure.
Key Highlights
- 1Cheniere's subsidiary, CCH, is issuing $768.74 million in Senior Secured Notes due December 31, 2039.
- 2The notes carry a fixed interest rate of 3.52%.
- 3Proceeds will be used to repay existing senior debt and unwind hedging instruments.
- 4The issuance is structured as a private placement under Section 4(a)(2) of the Securities Act.
- 5The notes will be senior secured obligations of CCH, with guarantees from its domestic subsidiaries.
- 6The notes are fully amortizing with a weighted average life of approximately 14 years.
- 7Amortization payments are scheduled to begin in June 2027.