Daily News: February 29, 2016

BofA, JPMorgan, Others Close $2.8B Cheniere Facility


Cheniere Energy Partners closed on the previously announced approximately $2.8 billion of senior secured credit facilities. Bank of America and JPMorgan Chase are among 16 banks that provided the facility.

The four-year credit facilities consist of an approximately $450 million Cheniere Creole Trail Pipeline tranche term loan, an approximately $2.1 billion Sabine Pass LNG tranche term loan and an approximately $240 million revolving credit facility.

The 16 arrangers and other participants are The Bank of Tokyo-Mitsubishi UFJ, ABN AMRO Capital, Société Générale, Industrial and Commercial Bank of China, Intesa Sanpaolo, JPMorgan Chase, Mizuho Bank, Sumitomo Mitsui, Morgan Stanley, Bank of America, Credit Suisse, HSBC, Commonwealth Bank of Australia, Canadian Imperial Bank of Commerce, ING Capital and FirstBank Florida.

Pricing for these facilities is 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 (i) to prepay the $400 million senior secured term loan at CCTP, (ii) 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, (iii) to pay associated transaction costs and make-whole amounts, if any, and (iv) for general business purposes of Cheniere Partners and its subsidiaries.

“We are pleased to announce the closing of these credit facilities, which allow us to efficiently refinance upcoming maturities at SPLNG and CCTP. In addition, this refinancing improves our debt maturity profile as subsequent to the repayment of our obligations at SPLNG and CCTP, the earliest debt maturity at Cheniere Partners is in 2020,” said Neal Shear, chairman of the board and interim CEO of Cheniere Partners.

Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.