Summary
Cheniere Energy, Inc. (LNG), through its subsidiary Sabine Pass Liquefaction, LLC (SPL), announced the successful closing of a private placement for $430 million in 5.900% Senior Secured Amortizing Notes due 2037. These notes were issued at a slight discount and will mature on September 15, 2037, with interest payments commencing in March 2023. The notes are secured and senior in payment to subordinated and unsecured debt, with amortization payments beginning in September 2025. This offering is part of SPL's ongoing financing strategy to support its operations. The company has also entered into a Registration Rights Agreement, obligating it to work towards registering these notes with the SEC within 360 days, or face potential additional interest payments. This move signals continued access to capital markets for Cheniere's subsidiary.
Key Highlights
- 1Sabine Pass Liquefaction, LLC (SPL), a subsidiary of Cheniere Energy, Inc. (LNG), issued $430 million in 5.900% Senior Secured Amortizing Notes due 2037.
- 2The notes were sold via a private placement on November 29, 2022, at a price of 99.856% of par.
- 3The notes mature on September 15, 2037, with semi-annual interest payments starting March 15, 2023.
- 4Amortization payments are scheduled to begin on September 15, 2025, with a weighted average life of approximately 9.5 years.
- 5The notes are senior secured obligations of SPL, ranking equally with existing secured debt and senior to subordinated and unsecured debt.
- 6Future restricted subsidiaries of SPL will guarantee these notes, making them senior secured obligations of those guarantors.
- 7SPL has entered into a Registration Rights Agreement to file a registration statement for these notes within 360 days, with potential penalties for non-compliance.