Stock Update (NYSE:LNG): Cheniere Partners Announces Offering of $1.0 Billion Senior Secured Notes

Cheniere Energy Partners, L.P. (NYSE MKT: LNG) announced that its wholly owned subsidiary, Sabine Pass Liquefaction, LLC (“Sabine Pass Liquefaction”), intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Secured Notes due 2025 (the “SPL 2025 Notes”).

Sabine Pass Liquefaction intends to use the net proceeds from the offering to pay capital costs in connection with the construction of the first four liquefaction trains at its facility inCameron Parish, Louisiana and to pay fees and expenses associated with the offering. In connection with the offering, Sabine Pass Liquefaction will reduce commitments on a ratable basis under its four credit facilities totaling approximately $2.7 billion (collectively, the “2013 Liquefaction Credit Facilities”). The SPL 2025 Notes will rank pari passu in right of payment with all existing and future senior secured indebtedness of Sabine Pass Liquefaction, including borrowings under the 2013 Liquefaction Credit Facilities, its outstanding senior secured notes due 2021, senior secured notes due 2022, senior secured notes due 2023, and senior secured notes due 2024 and its obligations under the senior letter of credit and reimbursement agreement.

The offer of the SPL 2025 Notes has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and the SPL 2025 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, 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.

Shares of Cheniere Energy Inc. closed yesterday at $80.28 . LNG has a 1-year high of $85 and a 1-year low of $48.45. The stock’s 50-day moving average is $72.77 and it’s 200-day moving average is $73.36.

On the ratings front, Cheniere Energy has been the subject of a number of recent research reports. In a report released yesterday, BTIG analyst William Frohnhoefer maintained a Buy rating on LNG, with a price target of $100, which implies an upside of 24.6% from current levels. Separately, on January 20, Barclays’ Christine Cho maintained a Buy rating on the stock and has a price target of $90.

Cheniere Energy Inc is engaged in LNG-related businesses. It owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P.

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