Cheniere prices $1.1 billion in offering of senior notes

Houston’s Cheniere Energy Partners, L.P., the firm building a new 200-mile pipeline carrying gas out of Oklahma’s STACK and SCOOP plays has priced an offering of more than $1 billion in Senior notes.

The company said the $1.1 billion in Senior Notes due 2026 will bear interest at a rate of 5.625% per annum and mature on Oct. 1, 2026. Closing of the offering will be Sept. 11, 2018.

Cheniere Partners intends to use the net proceeds from the offering, after deducting the initial purchasers’ discounts and commissions and estimated fees and expenses related to the CQP 2026 Notes, to prepay all of the outstanding term loans of approximately $1.1 billion under its senior secured credit facilities due 2020 (the “CQP Credit Facilities”). After applying the proceeds from this offering, only a $115 million working capital facility, which is currently undrawn, will remain as part of the CQP Credit Facilities, and both the CQP 2026 Notes and Cheniere Partners’ outstanding senior notes due 2025 will become unsecured.

Cheniere is in the midst of constructing the Midship Project that will begin near Kingfisher, Oklahoma. The 36-inch line will terminate near Bennington, Oklahoma. The project will also include three mainline compressor stations, seven receipt meter stations and taps and four delivery meters.

The Midship project will also include 20 miles of the Chisholm Lateral extending from the Chisholm Processing plant in Kingfisher and ending on the mainline of the Midship project near Okarche.

The Velma Lateral will include 13 miles of 16-inch diameter new line beginning at the Velma Processing plant in Stephens County and ending in Garvin County.