Cheniere Energy Inc. has confirmed that it will sell US$ 2.5 billion in convertible notes in order to fund the construction of its Corpus Christi LNG plant in Texas, USA.
EIG Management Company has agreed to purchase approximately US$ 1.5 billion of convertible notes. The convertible notes would be issued by a to-be-formed wholly-owned subsidiary of Cheniere, which would be the indirect owner of 100% of the equity interests in Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi Pipeline, L.P.
In a statement released on its website, Cheniere said: “Proceeds from the convertible notes would be used as equity to fund a portion of the costs of developing, constructing and placing into service the Corpus Christi Liquefaction Project, which is being designed for up to three liquefaction trains with an expected aggregate annual production capacity of approximately 13.5 [million tpa].”
Charif Souki, Chairman and CEO of Cheniere, said: "EIG has agreed to provide a significant portion of the equity component for the financing required on our Corpus Christi liquefaction project. EIG is a premier investor in energy infrastructure projects and we look forward to a long-term, productive working relationship."
In a separate statement, Cheniere announced that it has entered into a subscription agreement with RRJ Capital II Ltd. under which investment funds managed by RRJ will purchase, in aggregate, US$ 1 billion of unsecured convertible PIK notes issued by Cheniere. Proceeds from the convertible notes will also be used to fund the construction of the Corpus Christi liquefaction plant.
Souki said: "RRJ is making a substantial investment in Cheniere in connection with our Corpus Christi liquefaction project. RRJ was a significant equity investor in our Sabine Pass liquefaction project and we look forward to working with them again."
Souki also confirmed that Cheniere expects to commence construction of the Corpus Christi LNG plant early next year.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/11112014/cheniere-receives-funds-to-build-lng-terminal-1770/