New Issue: Sabine Pass prices $500 million tap of 5 5/8% notes due 2023 at 101.5 to yield 5.41%

By Paul A. Harris

Portland, Ore., May 15 - Sabine Pass Liquefaction, LLC priced a $500 million add-on to its non-callable 5 5/8% senior secured notes due April 15, 2023 (expected ratings Ba3/BB+) at 101.5 to yield 5.41% in a quick-to-market Thursday transaction, according to a syndicate source.

The deal launched earlier Thursday at 101.5.

RBC Capital Markets, LLC was the sole structuring agent and a joint bookrunner. Mizuho Securities USA Inc., SG Americas Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, Banca IMI SpA, Standard Chartered Bank and J.P. Morgan Securities LLC were also joint bookrunners.

The Houston-based liquid natural gas company plans to use the proceeds to pay capital costs in connection with the construction of liquefaction trains 1 through 4 and to repay bank debt.

The Thursday deal came just two days after Sabine Pass raised $2 billion in the high-yield primary market for the same uses of proceeds, by selling $2 billion of non-callable 5¾% senior secured notes due May 15, 2024.

Issuer:	Sabine Pass Liquefaction, LLC
Face amount:	$500 million
Proceeds:	$508 million
Maturity:	April 15, 2023
Security description:	Add-on to 5 5/8% senior secured notes
Structuring agent/bookrunner:	RBC Capital Markets LLC
Joint bookrunners:	Mizuho Securities USA Inc., SG Americas Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, Banca IMI SpA, Standard Chartered Bank, J.P. Morgan Securities LLC
Joint lead managers:	BofA Merrill Lynch, CIBC World Markets Corp., Goldman Sachs & Co.
Co-manager:	Deutsche Bank Securities Inc.
Coupon:	5 5/8%
Price:	101.5
Yield:	5.41%
Call protection:	Non-callable
Trade date:	May 15
Settlement date:	May 20 with accrued interest
Expected ratings:	Moody's: Ba3
	Standard & Poor's: BB+
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market
Original issue:	$1 billion priced at par in April 2013
Fungibility:	Upon registration add-on notes will be fungible with the original notes
Total issue size:	$1.5 billion

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