Cheniere closes $2.8B of senior secured credit facilities

Cheniere Energy Partners LP (NYSE MKT: CQP) has closed on $2.8 billion of senior secured credit facilities. The four-year credit facilities consist of a $450 million Cheniere Creole Trail Pipeline LP (CCTP) tranche term loan, a $2.1 billion Sabine Pass LNG LP (SPLNG) tranche term loan, and a $240 million revolving credit facility.

Pricing for these facilities is London Interbank Offered Rate (LIBOR) plus 225 basis points or the base rate plus 125 basis points, in each case with a 50 basis point step-up beginning on the third anniversary of the closing.

Proceeds from these new credit facilities will be used by Cheniere Partners to prepay the $400 million senior secured term loan at CCTP; to redeem or repay the approximately $1.7 billion senior secured notes due 2016 and the $420 million senior secured notes due 2020 that were issued by SPLNG; to pay associated transaction costs and make-whole amounts, if any; and for general business purposes of Cheniere Partners and its subsidiaries.

The arrangers and participants are the Bank of Tokyo-Mitsubishi UFJ Ltd.; ABN AMRO Capital USA LLC; Société Générale; Industrial and Commercial Bank of China Ltd., New York Branch; Intesa Sanpaolo SPA, New York Branch; JPMorgan Chase Bank NA; Mizuho Bank Ltd.; Sumitomo Mitsui Banking Corp.; Morgan Stanley Senior Funding Inc.; Bank of America NA; Credit Suisse; HSBC Bank USA NA; Commonwealth Bank of Australia; Canadian Imperial Bank of Commerce, New York Branch; ING Capital LLC; and FirstBank Florida. 

Through its wholly owned subsidiary SPLNG, Cheniere Partners owns 100% of the Sabine Pass LNG terminal on the Sabine-Neches Waterway just off the US Gulf Coast. The Sabine Pass LNG terminal includes existing infrastructure of five liquefied natural gas (LNG) storage tanks with capacity of 16.9 billion cubic feet equivalent (bcfe), two docks that can accommodate vessels with nominal capacity of up to 266,000 cubic meters, and vaporizers with regasification capacity of 4.0 Bcf/d. Through its wholly owned subsidiary CCTP, Cheniere Partners also owns a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with interstate pipelines.

Cheniere Partners, through its subsidiary Sabine Pass Liquefaction LLC (SPL), is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere Partners, through SPL, plans to construct up to six liquefaction trains, which are in various stages of development. Each liquefaction train is expected to have a nominal production capacity of 4.5 million tonnes per annum (MMtpa) of LNG. SPL has entered into six third-party LNG sale and purchase agreements (SPAs) that in the aggregate equate to 19.75 MMtpa of LNG and commence with the date of first commercial delivery of Trains 1 through 5 as specified in the respective SPAs.

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