Cheniere to obtain $1.5B from EIG for Corpus Christi liquefaction project

Cheniere Energy Inc.

Cheniere Energy Inc. (NYSE MKT: LNG) has signed a binding commitment letter with EIG Management Co. LLC, whereby investment funds managed by EIG have agreed to purchase $1.5 billion of convertible notes.

The convertible notes would be issued by a to-be-formed wholly owned subsidiary of Cheniere, which would be the indirect owner of 100% of the equity interests in Corpus Christi Liquefaction LLC and Cheniere Corpus Christi Pipeline LP.

Proceeds from the convertible notes would be used as equity to fund a portion of the costs of developing, constructing, and placing into service the Corpus Christi liquefaction project, which is being designed for up to three liquefaction trains with an expected aggregate annual production capacity of 13.5 mtpa.

In related news, Cheniere Energy has entered into a subscription agreement with RRJ Capital II Ltd., under which investment funds managed by RRJ will purchase, in aggregate, $1.0 billion of unsecured convertible PIK notes issued by Cheniere.

RRJ will have the right to transfer a portion of these convertible notes to Temasek Holdings (Private) Ltd. and its affiliates.

Proceeds from these convertible notes will be used to fund a portion of the costs of developing, constructing, and placing into service the Corpus Christi liquefaction project, which is being designed for up to three trains with an expected aggregate annual production capacity of 13.5 mtpa, related pipeline infrastructure, and general corporate purposes.

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