HOUSTON, March 3, 2015 /PRNewswire/ -- Cheniere Energy,
Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it has
priced an offering of Cheniere's 4.25% Convertible Senior Notes due
2045 (the "Convertible Notes") through an SEC registered direct
offering. The aggregate principal amount of the offering was
$625 million. The Convertible Notes
will bear interest at a rate of 4.25% per annum, paid semi-annually
in arrears, and will mature on March 15,
2045. Prior to December 15,
2044, the Convertible Notes will be convertible upon the
occurrence of certain conditions, and on and after such date will
become freely convertible. The Convertible Notes will be
convertible into the common stock of Cheniere at an initial
conversion price of $138.38 per
share, which represents approximately 170% of
the last reported sale price of the common stock of Cheniere
on Tuesday, March 3, 2015. Under
certain conditions, Cheniere may have the ability to terminate the
conversion rights of all or part of the Convertible Notes. In
addition, after March 15, 2020,
Cheniere may elect to redeem all or part of the notes at a
redemption price equal to the accreted amount of the notes to be
redeemed, plus any accrued and unpaid interest up to but
excluding the redemption date.
The net proceeds to Cheniere from the offering of the
Convertible Notes, net of any original issue discount, are expected
to be approximately $500
million, before transaction fees and expenses. The net
proceeds will be used by Cheniere for general corporate
purposes.
Closing is expected to occur March 9,
2015 subject to customary closing conditions. Concurrently
with closing, Cheniere will have entered into a base indenture and
a supplemental indenture pursuant to which the Notes will be
issued.
Lazard Frères & Co. LLC acted as placement agent in
connection with the offering of the Convertible Notes.
About Cheniere Energy, Inc.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses, and owns and operates the Sabine Pass
LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG terminal. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six Trains, each of which is
expected to have a nominal production capacity of approximately 4.5
mtpa. Construction has begun on Trains 1 through 4 at the Sabine
Pass Liquefaction Project. Cheniere has also initiated a project to
develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi
Liquefaction Project is being designed for up to three Trains, with
expected aggregate nominal production capacity of approximately
13.5 mtpa of LNG, three LNG storage tanks with capacity of
approximately 10.1 Bcfe and two LNG carrier docks. Commencement of
construction for the Corpus Christi Liquefaction Project is
subject, but not limited, to obtaining regulatory approvals,
entering into long-term customer contracts sufficient to underpin
financing of the project, obtaining financing, and Cheniere making
a final investment decision. Cheniere believes that LNG exports
from the Corpus Christi Liquefaction Project could commence as
early as 2018.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, statements regarding Cheniere's business strategy, plans
and objectives, including the use of proceeds from the offering.
Although Cheniere 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's 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's 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 does not assume a duty
to update these forward-looking statements.
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SOURCE Cheniere Energy, Inc.