Cheniere Energy Partners Prices $2B Notes - Analyst Blog


On May 13, 2014, midstream player Cheniere Energy Partners LP ( CQP ), declared the pricing of 5.75% senior notes by Sabine Pass Liquefaction, LLC, its fully owned affiliate. The principal amount of the secured notes which was previously reported at $1.5 billion has been upsized to $2.0 billion. The offering of the notes − about to mature by May 15, 2024 - is anticipated to close by May 20, 2014.   

Sabine Pass reveals that the notes are expected to be priced at par. The offering's net proceeds will likely bear capital expenses related to the manufacture of first four liquefaction trains. The trains will be constructed at Cameron Parish, LA based facility of Sabine Pass. The proceeds will also be used for paying debt and cost related to the offering of the notes.

On May 1, Cheniere Energy Partners reported its first-quarter results. The partnership reported a loss of 6 cents per share against the year-ago profit of 10 cents. Increased expenses related to operating and maintaining activities hampered the results. On the flip side, the first quarter loss bettered the Zacks Consensus Estimate of loss of 86 cents.

Cheniere Energy Partners currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the same industry like EQT Midstream Partners LP ( EQM ), Holly Energy Partners L.P ( HEP ) and Pembina Pipeline Corporation ( PBA ). All these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CQP , EQM , HEP , PBA

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