Cheniere Energy gets $822 million project financing loan for Sabine Pass

By Sara Rosenberg

New York, Feb. 28 - Sabine Pass LNG LP, a wholly owned limited partnership of Cheniere Energy Inc., closed on a new $822 million 10-year senior secured credit facility, according to a company news release.

HSBC Securities Inc. and SG Corporate & Investment Banking acted as joint lead arrangers on the deal, Societe Generale served as administrative agent and HSBC served as syndication agent.

The syndicate is comprised of 47 financial institutions.

Proceeds from the facility will be used to fund a substantial majority of the costs of constructing and placing into operation the Sabine Pass LNG liquefied natural gas receiving terminal in Cameron Parish, La. The facility will be available for draws to pay project costs incurred during construction following Sabine Pass LNG's equity contribution and standard conditions precedent.

Borrowings under the facility during the construction period will be at a rate of Libor plus 150 basis points, according to an 8-K filed with the Securities and Exchange Commission Monday.

Thereafter, the construction loan will convert to a term loan at a rate of Libor plus 125 basis points for three years and at Libor plus 162.5 basis points until termination.

Cheniere Energy is a Houston-based energy company.

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