Cheniere unit Sabine completes tender offer, accepts 97% of 7¼% notes

By Toni Weeks

San Diego, Oct. 31 - Cheniere Energy Partners, LP said its wholly owned subsidiary Sabine Pass LNG, LP received tenders for $533,939,000, or about 97%, of its $550 million outstanding 7¼% senior secured notes due 2013 by the expiration date of its tender offer for the notes, which was midnight ET on Oct. 29.

According to a press release, the company accepted $306,000 principal amount of the notes after 5 p.m. ET on Oct. 15, the early tender deadline, and before the expiration date. As previously reported, it accepted for purchase $533,633,000 of the notes before the Oct. 15 early tender deadline. The offer began Oct. 1.

The company will redeem the remaining outstanding notes at the make-whole redemption price plus accrued interest on Nov. 15.

As noted before, the total purchase price was $1,073.55 for each $1,000 principal amount of tendered by the early date, which included a $30.00 early tender premium.

Those who tendered after the early deadline will receive the base payment of $1,043.55 per $1,000 of notes.

The company said it would also pay accrued interest up to the settlement date, which was Oct. 16 for early tendered notes and promptly after the offer ends for the remaining tenders.

The tender offer was not conditioned upon any minimum amount of notes being tendered but was subject to the completion of a new financing to fund it. The company priced a $420 million issue of eight-year senior secured notes at par to yield 6½% on Oct. 1. The company also said it would use proceeds from a recent common units offering to pay for notes purchased in the tender offer.

Credit Suisse Securities (USA) LLC (212 325-2476 collect or 800 820-1653) was the dealer manager for the tender offer. Global Bondholder Services Corp. (866 470-4300) was the information agent.

Cheniere owns 100% of the Sabine Pass LNG terminal located on the Sabine Pass Channel in western Cameron Parish, La. The energy company is based in Houston.

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