Cheniere Energy Proposes $2.15 Billion Sabine Pass LNG Note Offering
Cheniere Energy, Inc. (AMEX:LNG) says that its wholly-owned subsidiary, Sabine Pass LNG, L.P., intends to offer, subject to market and other conditions, approximately $2.15 billion of senior secured notes due 2013 and 2016. The notes will be offered and sold in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and in offshore transactions to non-United States persons in reliance on Regulation S under the Securities Act.
The proceeds of the offering are intended to be used: to repay borrowings under, and replace, the existing $1.5 billion project finance facility of Sabine Pass LNG; to distribute funds sufficient for Cheniere LNG Holdings, LLC to repay its $600 million of term debt; to fund a reserve account for scheduled interest payments on the notes through May 2009; to fund the remaining costs to complete Phase 1 and Phase 2-Stage 1 of the Sabine Pass LNG receiving terminal; to pay transaction costs and expenses; and for other general business purposes.
The notes being offered by Sabine Pass LNG will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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