Sabine Pass Liquefaction LLC, a wholly owned affiliate of Cheniere Energy Partners LP (CQP), recently unveiled the pricing of $0.5 billion and $1.0 billion senior secured notes offering.
Specifically, Sabine Liquefaction priced the notes of $0.5 billion aggregate principal amount at 102.5% of par and priced the notes of $1.0 billion principal amount at par.
The $0.5 billion aggregate principal amount of 5.625% senior notes will mature on Feb 1, 2021, whereas the $1.0 billion aggregate principal amount of 5.625% senior notes is expected to mature on Apr 15, 2023. The offering is anticipated to close on Apr 16, 2013.
The net proceeds will be used primarily to compensate the expenses borne by Sabine Liquefaction for the construction of two liquefied natural gas (LNG) trains at Cameron Parish. The expenses associated with the offering of the notes will also be paid from the proceeds. Sabine Liquefaction will also use the proceeds to repay part of the outstanding balance under its $3.6 billion Term Loan facility.
Cheniere Energy Partners LP is the owner and the operator of the Sabine Pass LNG terminal through its wholly owned affiliate. The LNG terminal spreads over 1,000 acres of land and is based in western Cameron Parish, La.
The partnership currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.
However, there are certain firms in the energy sector that are expected to significantly outperform the equity markets in the next one to three months, which include Calumet Specialty Products Partners LP (CLMT), Stone Energy Corp. (SGY) and Range Resources Corporation (RRC). All these stocks carry a Zacks Rank #1 (Strong Buy).
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