At closing, net proceeds of approximately $2,000 million from the offering were used as follows: approximately $380 million to repay borrowings under, and replace, the $1.5 billion project finance facility of Sabine Pass LNG; approximately $380 million to distribute funds to Cheniere LNG Holdings, LLC that it used, together with other funds, to repay its approximately $600 million of term debt; approximately $335 million to fund a reserve account for scheduled interest payments on the notes through May 2009; and approximately $18 million to pay transaction costs and expenses. The remaining approximately $887 million of net proceeds of the offering will be used to fund the remaining costs to complete Phase 1 and Phase 2-Stage 1 of the Sabine Pass LNG receiving terminal.
The notes sold by Sabine Pass LNG were not 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.
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