CQP Arm Prices $1.0B Notes - Analyst Blog
November 20 2013 - 5:00PM
Zacks
On Nov 18, Cheniere Energy
Partners LP (CQP), a publicly traded partnership, declared
that Sabine Pass Liquefaction LLC (Sabine Liquefaction) has priced
senior secured notes worth $1.0 billion. Sabine Liquefaction, a
fully owned affiliate of CQP, expects the offering to close by Nov
25, 2013.
The notes, which are scheduled to mature by Mar 15, 2022, will
carry an interest rate of 6.25% and will likely be priced at 100%
of their face value.
The proceeds from the notes offering are expected to be utilized to
bear expenses related to the manufacturing of the first four
liquefaction trains at Cameron Parish, La.-based facility of Sabine
Liquefaction. Moreover, the proceeds will be used to pay a part of
the $5.9 billion debt under the credit facilities of Sabine
Liquefaction and to shell out the cost connected with the notes
offering.
The news was declared in the press release of CQP after the close
of market on Nov 18, 2013. The partnership opened at $29.31 per
unit the following day, reflecting a negligible change compared
with the closing price of $29.30 per unit on Nov 18.
Houston, Texas-based CQP, a subsidiary of Cheniere Energy
Inc. (LNG), is the owner and operator of the western
Cameron Parish, La.-based Sabine Pass liquefied natural gas (LNG)
terminal.
CQP currently holds a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can look at better-performing firms in the energy
sector like Harvest Natural Resources Inc. (HNR)
and Matador Resources Company (MTDR). Both the
stocks sport a Zacks Rank #1 (Strong Buy).
CHENIERE ENERGY (CQP): Get Free Report
HARVEST NATURAL (HNR): Free Stock Analysis Report
CHENIERE ENERGY (LNG): Free Stock Analysis Report
MATADOR RESOURC (MTDR): Free Stock Analysis Report
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