Cheniere in $1.5 billion senior notes offering

US LNG exporting giant Cheniere has priced its $1.5 billion offering of senior notes due 2034.

Cheniere said in a statement the 2034 notes will bear interest at a rate of 5.650 percent per annum.

Also, the notes will be issued at 99.789 percent of par and will mature on April 15, 2034.

Cheniere expects the closing of the offering to occur on March 19.

It intends to use the proceeds from the offering to retire all or a portion of the $1.5 billion outstanding aggregate principal amount of Cheniere Corpus Christi Holdings, LLC’s senior secured notes due 2025.

The Houston-based firm said the notes were not registered under the Securities Act of 1933, or the securities laws of any state or other jurisdictions, and the notes may not be offered or sold in the US.

Cheniere added that this announcement does not constitute an offer to purchase or a solicitation of an offer to sell the CCH 2025 notes or a notice of redemption under the indenture governing the CCH 2025 notes.

The 2034 notes will rank pari passu in right of payment with existing senior notes at Cheniere, including the senior notes due 2028.

Cheniere expanding capacity

Cheniere is the largest LNG exporter in the US.

The company’s Sabine Pass facility in Louisiana currently has a capacity of about 30 mtpa following the launch of the sixth train in February 2022, while Cheniere’s three-train Corpus Christi plant in Texas can produce about 15 mtpa of LNG and is undergoing expansion to add more than 10 mtpa of capacity.

Besides this expansion, Cheniere plans to build two more liquefaction trains as part of the third expansion phase at the Corpus Christi plant.

In addition, Cheniere also aims to build two new liquefaction trains as part of the Sabine Pass Stage 5 expansion project to add up to 20 mtpa of capacity to the giant facility.

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