Published on 4/10/2013 in the Prospect News High Yield Daily.
New Issue: Sabine Pass prices $1.5 billion secured notes in two tranches
By Paul A. Harris
Portland, Ore., April 10 - Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Energy Partners, LP, priced $1.5 billion of secured notes (Ba3/BB+/) in a two-part quick-to-market transaction on Wednesday, according to a syndicate source.
The transaction included a $500 million add-on to the 5 5/8% senior secured notes due Feb. 1, 2021, which priced at 102.5 to yield 5.229%. The reoffer price came on top of price talk.
The deal also included a $1 billion tranche of new 10-year senior secured notes, which priced at par to yield 5 5/8%. The yield printed on top of yield talk.
Morgan Stanley & Co. LLC, SG Americas Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Standard Chartered Bank, Mitsubishi UFJ Securities (USA) Inc., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Banca IMI, J.P. Morgan Securities LLC, Lloyds Securities LLC, Scotia Capital (USA) Inc. and SMBC were the joint bookrunners.
Proceeds will be used to pay costs in connection with the construction of Train 1 and Train 2.
The liquid natural gas company is based in Houston.
| Issuer: | Sabine Pass Liquefaction, LLC (Cheniere Energy)
|
| Amount: | $1.5 billion
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| Bookrunners: | Morgan Stanley & Co. LLC, SG Americas Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Standard Chartered Bank, Mitsubishi UFJ Securities (USA) Inc., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Banca IMI, J.P. Morgan Securities LLC, Lloyds Securities LLC, Scotia Capital (USA) Inc., SMBC
|
| Joint lead managers: | Santander Investment Securities Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, CIBC
|
| Trade date: | April 10
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| Settlement date: | April 16
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Marketing: | Quick to market
|
|
|
| Add-on
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| Face amount: | $500 million
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| Proceeds: | $512.5 million
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| Maturity: | Feb. 1, 2021
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| Security description: | Add-on to 5 5/8% senior secured notes due Feb. 1, 2021
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| Coupon: | 5 5/8%
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| Price: | 102.5
|
| Yield: | 5.229%
|
| Spread: | 390 bps
|
| Call protection: | Non-callable
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| Price talk: | 102.5
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| Original issue: | $1.5 billion issue priced at par on Jan. 29, 2013
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| Fungibility: | Rule 144A notes are immediately fungible; Regulation S notes will be fungible after a 40-day seasoning period
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| Total issue size: | $2 billion
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|
| New notes
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| Amount: | $1 billion
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| Maturity: | April 15, 2023
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| Securities: | Senior secured notes
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| Coupon: | 5 5/8%
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| Price: | Par
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| Yield: | 5 5/8%
|
| Spread: | 383 bps
|
| Call protection: | Non-callable
|
| Price talk: | 5 5/8%
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