Cheniere Energy, Inc. (AMEX:LNG) announced today that its subsidiary,
Sabine Pass LNG, L.P., has priced an offering of $183.5 million
aggregate principal amount of 7½% senior
secured notes due 2016. The notes will provide Sabine Pass LNG with
approximately $145 million of gross proceeds. The offering is scheduled
to close on September 15, 2008. The notes are being offered and sold in
the United States only to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”), or in offshore transactions to
non-United States persons in reliance on Regulation S under the
Securities Act.
The proceeds from the offering will be used for construction, cool down,
commissioning and completion costs of the Sabine Pass LNG receiving
terminal and for working capital and other general business purposes of
Sabine Pass LNG, including payment of transaction costs and expenses.
These notes constitute an additional issuance of Sabine Pass LNG’s
7½% Senior Secured Notes due 2016 pursuant to
the indenture, dated as of November 9, 2006, under which Sabine Pass LNG
previously issued $1,482 million of such 2016 notes. These notes will be
identical to and will be pari passu with the outstanding 2016
notes. These notes and the outstanding 2016 notes will be treated as a
single series of notes under the indenture; however, these notes will be
issued with an original issue discount for U.S. federal income tax
purposes and therefore will not trade as a single class with the
outstanding 2016 notes.
These notes will not be registered under the Securities Act or any state
securities laws and may not be offered or sold in the United States
except pursuant to an exemption from the registration requirements of
the Securities Act and applicable state securities laws.
This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy, such securities and shall not
constitute an offer, solicitation or sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful.
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical facts,
included herein are "forward-looking statements." Included among
"forward-looking statements" are, among other things, statements
regarding the business strategy, plans and objectives of Cheniere or
Sabine Pass LNG. Although Cheniere believes that the expectations
reflected in these forward-looking statements are reasonable, they do
involve assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. The actual results for Cheniere or Sabine Pass
LNG could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including market conditions and other risks typically associated with
securities offerings. In particular, the forward-looking statements of
Cheniere or Sabine Pass LNG are subject to the risks and uncertainties
discussed in Cheniere's periodic reports and Sabine Pass LNG's periodic
reports that are filed with and available from the Securities and
Exchange Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.
Cheniere Energy, Inc., Houston
Investors:
Christina
Cavarretta, 713-375-5100
or
Media:
Diane
Haggard, 713-375-5259
