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Cheniere Energy (LNG) Prices Senior Notes Worth $1.5 Billion

Zacks Equity Research

Houston-based natural gas exporter Cheniere Energy, Inc LNG recently announced the pricing of senior notes offering worth $1.5 billion, scheduled to mature on Jun 30, 2027. The offering was upsized from the previously announced $1 billion aggregate principal amount of notes. The notes carrying a coupon rate of 5.125% would be offered to select investors. The notes are priced on par and the closure of the offering is scheduled on May 19, 2017, subject to customary closing conditions.

Cheniere Energy intends to use the net proceeds from this offering to prepay a portion of debt associated with its Corpus Christi liquefied natural gas export facility in Texas. Specifically, it will use the funds to pay off a portion of the principal amounts currently outstanding under Cheniere Corpus Christi Holdings, LLC’s term loan credit facility.

Zacks Rank and Key Picks

Cheniere Energy is primarily engaged in liquefied natural gas-related businesses. The company owns and operates the Sabine Pass liquefied natural gas terminal in Louisiana through its 57.9% ownership interest in and management agreements with Cheniere Energy Partners, L.P. CQP.

In the last six months Cheniere Energy’s shares have outperformed the Zacks categorized Oil and Gas - United States - Exploration and Production industry. The company’s shares gained 31.3%, while the industry declined 8.3%

Cheniere Energy currently carries a Zacks Rank #3 (Hold).

Some better-ranked players from the energy space include Pampa Energia S.A. PAM and RWE Aktiengesellschaft RWEOY. Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Pampa Energia is expected to report year-over-year growth of 38,200% in its earnings in 2017.

RWE is expected to report year-over-year growth of 42.45% in its earnings in 2017.

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