Cheniere Energy Partners priced a $2 billion offering of senior notes on May 27, split into two tranches with maturities in 2036 and 2056. The 2036 notes carry an interest rate of 5.35% per year, while the 2056 notes bear a rate of 6.05%.
According to Yahoo Finance, the company plans to use proceeds from the offering to repay and refinance existing debt, including the Sabine Pass Liquefaction 5% notes that come due in 2027. The company may also direct some of the proceeds toward capital expenditures, working capital, and other business opportunities.
The bond offering followed the signing of a contract with Bechtel Corp for the first phase of an expansion at the Sabine Pass LNG terminal in Louisiana. That expansion is designed to add 6 million metric tons per annum of additional LNG capacity to the existing facility.
Cheniere Energy Partners operates as a midstream energy company. It liquefies natural gas at the Sabine Pass terminal and loads it onto ships for delivery to utilities, energy companies, and traders around the world. The company trades on the New York Stock Exchange under the ticker CQP.
The Sabine Pass terminal is one of the largest LNG export facilities in the United States. The expansion project, with Bechtel serving as the contractor, represents a significant step in the company's effort to grow its export capacity as global demand for liquefied natural gas continues to be a focus for energy investors.