Non-recourse construction/term loan - Cheniere Energy Partners
SG CIB acted as Financial Advisor, Joint Lead Arranger, Joint Lead Bookrunner, Documentation Agent, Administrative Agent, Inter-creditor Agent and Common Security Trustee for the $3.6 billion non-recourse, senior bank debt transaction for Cheniere Energy Partners, L.P. (NYSE Amex: CQP).
The proceeds of the financing will support the development, construction and operation of a natural gas liquefaction facility composed of two LNG trains with 4.5 mmtpa capacity each. Sabine Pass Liquefaction, LLC, an indirect wholly owned subsidiary of Cheniere Energy Partners, L.P, is the borrower. The Project is being financed on a 65/35 debt-to-equity basis. Blackstone Capital Partners VI L.P. and Cheniere Energy Inc. (NYSE Amex: LNG) will be providing $2 billion of the gross equity required by the Project, which is expected to be completed in 2016.
Bechtel Oil, Gas and Chemicals, Inc. is providing engineering, procurement and construction services under a lump-sum, turnkey contract. Subsidiaries of BG Group plc and Gas Natural SDG, S.A will off take the majority of the LNG produced by the facility under 20-year Sale and Purchase Agreements. Sabine Pass Liquefaction will be the first LNG export terminal in the continental United States and, with the addition of liquefaction capabilities to existing re-gasification facilities, the Sabine Pass Terminal will be the world's first bi-directional facility capable of liquefying and exporting domestic U.S. natural gas in addition to importing and re-gasifying foreign-sourced LNG. The development of the liquefaction project is a response to changing U.S natural gas market dynamics over the last several years, which has rendered the U.S a net natural gas exporter. Cheniere Energy Partners is a majority owned subsidiary of Cheniere Energy, Inc. (NYSE Amex: LNG). Cheniere Energy engages in LNG-related businesses, including terminals, natural gas pipelines, and natural gas marketing businesses. The company's wholly owned subsidiary, Cheniere Marketing, LLC, is engaged in the LNG and natural gas marketing business. Blackstone represents 30% of Cheniere Energy Partners' equity and an important source of capital for the transaction, establishing it as a key strategic partner for Cheniere Energy, Inc.