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Cheniere prices an offering of its Convertible Senior Notes

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LNG Industry,


Cheniere Energy Inc. has priced an offering of Cheniere's 4.25% Convertible Senior Notes due 2045 through an SEC registered direct offering.

The aggregate principal amount of the offering was US$625 million. The Convertible Notes will bear interest at a rate of 4.25%/yr, paid semi-annually in arrears, and will mature on 15 March 2045.

Prior to 15 December 2044, the Convertible Notes will be convertible upon the occurrence of certain conditions, and on and after such date will become freely convertible. 

The Convertible Notes will be convertible into the common stock of Cheniere at an initial conversion price of US$138.38 per share. Under certain conditions, Cheniere may have the ability to terminate the conversion rights of all or part of the Convertible Notes. In addition, after 15 March 15 2020, Cheniere may elect to redeem all or part of the notes at a redemption price equal to the accreted amount of the notes to be redeemed, plus any accrued and unpaid interest up to but excluding the redemption date.

Cheniere expects the net proceeds from the offering of the Convertible Notes, net of any original issue discount, to amount to approximately US$500 million, before transaction fees and expenses. The net proceeds will be used by Cheniere for general corporate purposes.

Closing is expected to occur 9 March 2015 subject to customary closing conditions. Concurrently with closing, Cheniere will have entered into a base indenture and a supplemental indenture pursuant to which the Notes will be issued.

Lazard Frères & Co. LLC acted as placement agent in connection with the offering of the Convertible Notes.


Adapted from press release by

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04032015/cheniere-prices-an-offering-of-its-convertible-senior-notes-359/


 

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