Sabine Pass Liquefaction LLC, a wholly owned affiliate of
Cheniere Energy Partners LP
), recently unveiled the pricing of $0.5 billion and $1.0 billion
senior secured notes offering.
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Specifically, Sabine Liquefaction priced the notes of $0.5
billion aggregate principal amount at 102.5% of par and priced
the notes of $1.0 billion principal amount at par.
The $0.5 billion aggregate principal amount of 5.625% senior
notes will mature on Feb 1, 2021, whereas the $1.0 billion
aggregate principal amount of 5.625% senior notes is expected to
mature on Apr 15, 2023. The offering is anticipated to close on
Apr 16, 2013.
The net proceeds will be used primarily to compensate the
expenses borne by Sabine Liquefaction for the construction of two
liquefied natural gas (LNG) trains at Cameron Parish. The
expenses associated with the offering of the notes will also be
paid from the proceeds. Sabine Liquefaction will also use the
proceeds to repay part of the outstanding balance under its $3.6
billion Term Loan facility.
Cheniere Energy Partners LP is the owner and the operator of the
Sabine Pass LNG terminal through its wholly owned affiliate. The
LNG terminal spreads over 1,000 acres of land and is based in
western Cameron Parish, La.
The partnership 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 1 to 3 months.
However, there are certain firms in the energy sector that are
expected to significantly outperform the equity markets in the
next one to three months, which include
Calumet Specialty Products Partners LP
Stone Energy Corp.
Range Resources Corporation
). All these stocks carry a Zacks Rank #1 (Strong Buy).