CQP Holdco starts roadshow for $1 billion private placement of 10-year secured notes

By Paul A. Harris

Portland, Ore., May 24 – CQP Holdco LP and BIP-V Chinook Holdco LLC began a roadshow on Monday for a $1 billion offering of 10-year senior secured notes, according to market sources.

Initial guidance is in the mid-5% area, a trader said.

The deal, which was set to kick off on a Monday morning conference call with investors, is scheduled to be marketed on a roadshow through Wednesday.

The notes are related to Blackstone Group Inc.'s sale of a portion of its stake in Cheniere Energy Partners, LP to Brookfield Infrastructure and are in the market as a private placement. However, upon settlement the notes are expected to be eligible to trade under a Rule 144A Cusip number.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Blackstone, Sera Global, MUFG, RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC are the placement agents.

Moody's Investors Service assigns its B2 corporate credit rating to the issuer. S&P Global Ratings assigns a corporate credit rating of B to the issuer.

The notes become callable after five years at par plus 50% of the coupon. They feature a five-year 40% equity clawback and a 101% poison put.

Proceeds will be used to refinance all debt under the 2019 credit agreement and make a distribution to the parent in order to fund repayment of certain debt.

The prospective issuer is a holding company of Houston-based LNG supplier Cheniere Energy Partners. It monitors investment and exercises governance rights in Cheniere Energy Partners.

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