Published on 2/26/2015 in the Prospect News High Yield Daily.
New Issue: Sabine Pass sells upsized $2 billion 5 5/8% 10-year bullet at par
By Paul A. Harris
Portland, Ore., Feb. 26 – Sabine Pass Liquefaction, LLC doubled the size of its deal to $2 billion from $1 billion, pricing its issue of non-callable 10-year first-lien senior secured notes (expected ratings Ba3/BB+/) at par to yield 5 5/8% on Thursday, according to market sources.
The yield printed in the middle of the 5½% to 5¾% yield talk.
J.P. Morgan Securities LLC, RBC Capital Markets, Mizuho, SG CIB, Morgan Stanley & Co. LLC, HSBC, Scotia Capital, Credit Suisse Securities (USA) LLC, Lloyds TSB, MUFG, Credit Agricole CIB, BBVA, ING, Banca IMI, Standard Chartered Bank and SMBC Nikko were the joint bookrunners.
Proceeds, including those resulting from the $1 billion upsizing of the deal, will be used to pay capital costs in connection with the construction of the first four liquefaction trains at the company’s facility in Cameron Parish, La.
Sabine Pass Liquefaction is a wholly owned subsidiary of Cheniere Energy Partners, LP, a Houston-based energy company.
| Issuer: | Sabine Pass Liquefaction, LLC
|
| Amount: | $2 billion, increased from $1 billion
|
| Maturity: | March 1, 2025
|
| Securities: | First-lien senior secured notes
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets, Mizuho, SG CIB, Morgan Stanley & Co. LLC, HSBC, Scotia Capital, Credit Suisse Securities (USA) LLC, Lloyds TSB, MUFG, Credit Agricole CIB, BBVA, ING, Banca IMI, Standard Chartered Bank, SMBC Nikko
|
| Joint lead managers: | BofA Merrill Lynch, Santander, CIBC World Markets, Goldman Sachs & Co.
|
| Co-managers: | Deutsche Bank Securities Inc.
|
| Coupon: | 5 5/8%
|
| Price: | Par
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| Yield: | 5 5/8%
|
| Spread: | 363 bps
|
| Call protection: | Par call three months prior to maturity, otherwise non-callable
|
| Trade date: | Feb. 26
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| Settlement date: | March 3
|
| Expected ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick to market
|
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