Cheniere Energy, Inc. announced Wednesday that its subsidiary, Sabine Pass LNG, L.P., has priced an offering of $183.5 million aggregate principal amount of 7 1/2% senior secured notes due 2016. The notes will provide Sabine Pass LNG with approximately $145 million of gross proceeds.
The offering is scheduled to close on September 15, 2008. The notes are being offered and sold in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), or in offshore transactions to non-United States persons in reliance on Regulation S under the Securities Act.
The proceeds from the offering will be used for construction, cool down, commissioning and completion costs of the Sabine Pass LNG receiving terminal and for working capital and other general business purposes of Sabine Pass LNG, including payment of transaction costs and expenses.
These notes constitute an additional issuance of Sabine Pass LNG's 7 1/2% Senior Secured Notes due 2016 pursuant to the indenture, dated as of November 9, 2006, under which Sabine Pass LNG previously issued $1,482 million of such 2016 notes. These notes will be identical to and will be pari passu with the outstanding 2016 notes. These notes and the outstanding 2016 notes will be treated as a single series of notes under the indenture; however, these notes will be issued with an original issue discount for U.S. federal income tax purposes and therefore will not trade as a single class with the outstanding 2016 notes.