Cheniere Partners Announces Upsize and Pricing of $1.5 billion Senior Notes due 2031

Rhea-AI Summary

Cheniere Energy Partners, L.P. (NYSE American: CQP) has upsized its offering of Senior Notes due 2031 from $1.0 billion to $1.5 billion. The CQP 2031 Notes will bear an interest rate of 4.00% and are set to mature on March 1, 2031. The proceeds will be used to refinance outstanding senior notes due 2025 and cover related fees and expenses. This offering has not been registered under the Securities Act, meaning sales are restricted without proper registration or exemptions.

Positive

• Increased offering amount from $1.0 billion to $1.5 billion.
• Interest rate set at a competitive 4.00% per annum.
• Proceeds aimed at refinancing, potentially optimizing debt management.

Negative

• CQP 2031 Notes not registered under Securities Act, limiting investor access.
• Potential risks involved in forward-looking statements regarding business strategy.

Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE American: CQP) announced today that it has upsized and priced its previously announced offering of Senior Notes due 2031 (the "CQP 2031 Notes"). The principal amount of the offering has been increased from the initially announced $1.0 billion to $1.5 billion. The CQP 2031 Notes will bear interest at a rate of 4.00% per annum and will mature on March 1, 2031. The CQP 2031 Notes are priced at par, and the closing of the offering is expected to occur on March 11, 2021.

Cheniere Partners intends to use the proceeds from the offering (after deducting the initial purchasers’ discounts, estimated fees and expenses), together with cash on hand, to refinance all of Cheniere Partners’ outstanding senior notes due 2025 (the “CQP 2025 Notes”) and to pay fees and expenses in connection with the refinancing. This press release does not constitute an offer to purchase or a solicitation of an offer to sell the CQP 2025 Notes. The CQP 2031 Notes will rank pari passu in right of payment with the existing senior notes at Cheniere Partners, including the CQP 2025 Notes, the senior notes due 2026 and the senior notes due 2029.

The offer of the CQP 2031 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and the CQP 2031 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.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, statements regarding Cheniere Partners’ business strategy, plans and objectives, including the use of proceeds from the offering. Although Cheniere Partners 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 Partners’ 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 Partners’ 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 Partners does not assume a duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210225006259/en/

FAQ

What is the CQP 2031 Notes offering by Cheniere Partners?

Cheniere Partners has upsized its CQP 2031 Notes offering from $1.0 billion to $1.5 billion, with a 4.00% interest rate.

When do the CQP 2031 Notes mature?

The CQP 2031 Notes are set to mature on March 1, 2031.

How will Cheniere Partners use the proceeds from the CQP 2031 Notes?

The proceeds will be used to refinance outstanding senior notes due 2025 and cover related fees and expenses.

Are the CQP 2031 Notes registered under the Securities Act?

No, the CQP 2031 Notes have not been registered under the Securities Act, limiting their sale in the U.S. without registration.

What risks are associated with the CQP 2031 Notes offering?

There are potential risks involved with forward-looking statements regarding Cheniere Partners' business strategy and performance.