Cheniere Partners Announces Pricing of $1.5 Billion Senior Secured Notes Offering by Sabine Pass Liquefaction
HOUSTON, Jan. 29, 2013
HOUSTON, Jan. 29, 2013 /PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) announced today that its wholly owned subsidiary, Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), has priced its previously announced offering of Senior Secured Notes due 2021 ("SPL 2021 Notes"). The SPL 2021 Notes were upsized from $1 billion to $1.5 billion. The SPL 2021 Notes will bear interest at a rate of 5.625% per annum and will mature on February 1, 2021. The SPL 2021 Notes are priced at par and the closing of the offering is expected to occur on February 1, 2013.
There were only one of two ways to pay for the liquification facilities; debt or secondary offering. CQP chose debt. I would assume that at some point in the distant future CQP will have a secondary offering to pay off this debt. Its how these companies work. Right now, the debt is cheaper than a secondary offering. If you want to build a 1.5 billion dollar liquification plant, you've got to get the money from somewhere.