Cheniere Energy to launch $2.05 billion in term loans on Tuesday

By Sara Rosenberg

New York, May 24 - Cheniere Energy Partners LP is scheduled to hold a bank meeting at 2 p.m. ET on Tuesday in New York to launch $2.05 billion of new senior secured term loans, according to a market source.

Credit Suisse Securities (USA) LLC, SG Americas Securities LLC, Bank of Tokyo-Mitsubishi UFJ, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are the lead banks on the deal.

The debt consists of a $750 million 61/2-year term loan at Cheniere Partners and a $1.3 billion seven-year term loan at Sabine Pass Liquefaction LLC, the source said.

Both term loans are non-callable for two years, then at 102 in year three and 101 in year four, the source said.

Proceeds from the Cheniere Partners loan will be used to fund the acquisition of the Creole Trail Pipeline, to pay for pipeline improvement and modification costs and for other general business purposes.

Meanwhile, the Sabine Pass loan will be used to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass LNG liquefaction project.

Closing is expected by the end of this quarter in conjunction with the closing of the equity financing and the purchase of the Creole Trail Pipeline.

Cheniere is a Houston-based energy company.

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