Cheniere Energy Inc. entered into a note purchase agreement with EIG Management Co. LLC. The agreement finalized the definitive documentation for the previously announced financing under which investment funds EIG manages will purchase $1.5 billion of convertible notes. Proceeds will be used as equity to fund a portion of the costs of developing, constructing and placing into service Cheniere’s Corpus Christi Liquefaction Project. The project is being designed for up to three liquefaction trains with an expected total annual production capacity of about 13.5 million tonnes per annum. The financing will close when Cheniere reaches a positive final investment decision (FID) on the liquefaction project, which is expected in the first half of 2015.
All financing commitments have been obtained for the project, including some of the proceeds from $1 billion of convertible notes Cheniere issued in November 2014 and the recently announced $11.5 billion of debt commitments received from several financial institutions in December 2014.
Commencement of construction is subject to receipt of regulatory approvals, entering into sufficient long-term customer contracts to underpin the project’s financing, finalizing financing, and a positive FID from Cheniere. Construction is expected to begin during the first half of 2015.
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