Cheniere pulls term loan Bs, opts for term loan A at Sabine Pass

By Sara Rosenberg

New York, July 12 - Cheniere Energy Partners LP has withdrawn its $1.25 billion seven-year senior secured term loan B at Sabine Pass Liquefaction LLC and instead will get a new term loan A, according to a news release.

In addition, the company pulled its $750 million 61/2-year senior secured term loan B at Cheniere Partners, and intends to postpone the purchase of the Creole Trail Pipeline from Cheniere Energy Inc. until after construction begins and financing for the purchase has been obtained.

The new Sabine Pass term loan A has firm commitments of about $3.4 billion, and commitments of about $200 million with additional financial institutions are being worked on, the release said.

The seven-year A loan is expected to be priced at Libor plus 350 basis points during construction and Libor plus 375 bps during operations.

Proceeds 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.

Cheniere said in its news release that commitments for the term loan A were received from all of the previously announced joint lead banks and from additional banks and financial institutions.

The Sabine Pass term loan B that was pulled had been talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 95.

And, price talk on the withdrawn Cheniere term loan B was Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 95.

Both term loan Bs were going to be non-callable for two years, then at 102 in year three and 101 in year four.

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 were the lead banks on the term loan Bs.

Cheniere is a Houston-based energy company.

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