HOUSTON, Jan. 16, 2015 /PRNewswire/ -- Cheniere
Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it
has entered into a note purchase agreement with EIG Management
Company, LLC ("EIG") finalizing the definitive documentation for
the previously announced financing under which investment funds
managed by EIG will purchase $1.5
billion of convertible notes (the "Financing"). Proceeds
from the Financing will be used as equity to fund a portion of the
costs of developing, constructing and placing into service the
Corpus Christi Liquefaction Project (the "Liquefaction Project"),
which is being designed for up to three liquefaction trains with an
expected aggregate annual production capacity of approximately 13.5
mtpa. The Financing is scheduled to close once Cheniere
reaches a positive final investment decision on the Liquefaction
Project, expected in the first half of 2015.
All financing commitments have been obtained for the
Liquefaction Project, including a portion of the proceeds from
$1 billion of convertible notes
issued by Cheniere Energy, Inc. in November
2014 and the recently announced approximately $11.5 billion of debt commitments received from
several financial institutions in December
2014.
Commencement of construction of the Liquefaction Project is
subject to, but not limited to, receiving regulatory approvals,
entering into long-term customer contracts sufficient to underpin
financing of the Liquefaction Project, finalizing financing, and
Cheniere making a final investment decision. Construction is
expected to commence in the first half of 2015.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses, and owns and operates the Sabine Pass
LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG terminal. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six Trains, each of which is
expected to have a nominal production capacity of approximately 4.5
mtpa. Construction has begun on Trains 1 through 4 at the
Sabine Pass liquefaction project.
Cheniere has also initiated a project to develop liquefaction
facilities near Corpus Christi,
Texas. The Corpus Christi
liquefaction project is being designed for up to three Trains, with
expected aggregate nominal production capacity of approximately
13.5 mtpa of LNG, three LNG storage tanks with capacity of
approximately 10.1 Bcfe and two LNG carrier docks. Commencement of
construction for the Corpus
Christi liquefaction project is subject, but not limited to,
obtaining regulatory approvals, entering into long-term customer
contracts sufficient to underpin financing of the project,
obtaining financing, and Cheniere making a final investment
decision. Cheniere believes that LNG exports from the Corpus Christi liquefaction project could
commence as early as 2018.
EIG is a leading institutional investor to the global energy
sector with $15.1 billion under
management as of September 30, 2014.
EIG specializes in private investments in energy and energy-related
infrastructure on a global basis. During its 32-year history, EIG
has invested over $16.6 billion in
the sector through 300 projects or companies in 35 countries on six
continents. EIG's clients include many of the leading pension
plans, insurance companies, endowments, foundations and sovereign
wealth funds in the U.S., Asia and
Europe. EIG is headquartered in
Washington, D.C. with offices in
Houston, London, Sydney, Rio de
Janeiro, Hong Kong and
Seoul. For more information,
visit www.eigpartners.com.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 (the "Securities Act") and Section 21E
of the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, included herein are "forward-looking
statements." Included among "forward-looking statements" are, among
other things, (i) statements regarding Cheniere's business
strategy, plans and objectives, including the Financing and the
use of proceeds therefrom and the construction and operation
of liquefaction facilities, (ii) statements regarding expectations
regarding regulatory authorizations and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere's LNG terminal and pipeline businesses, including
liquefaction facilities, (iv) statements regarding the business
operations and prospects of third parties, (v) statements regarding
potential financing arrangements and (vi) statements regarding
future discussions and entry into contracts. Although Cheniere
believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Cheniere's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in Cheniere's
periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Other than as required under the
securities laws, Cheniere does not assume a duty to update these
forward-looking statements.
The offer and sale of the notes pursuant to the Financing has
not been, and will not be, registered under the Securities Act and
the notes may not be offered or sold in the United States absent registration under
the Securities Act or an applicable exemption from the registration
requirements of the Securities Act. This press release shall not
constitute an offer to sell or a solicitation of an offer to buy
such notes or any other securities, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale of these securities would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
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SOURCE Cheniere Energy, Inc.