Houston-based LNG exporter Cheniere Energy intends to offer $1.0 billion senior secured notes due 2029 by its wholly-owned subsidiary Cheniere Corpus Christi Holdings (CCH).
Cheniere said on Tuesday that CCH intended to use the proceeds from the offering to prepay a portion of the principal amount currently outstanding under CCH’s term loan credit facility due 2024.
The CCH 2029 notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank on an equal footing with the right of payment with all existing and future senior secured indebtedness of CCH.
These include borrowings under the CCH credit facility, its outstanding senior secured notes due 2024, senior secured notes due 2025, senior secured notes due 2027, both series of senior secured notes due 2039, and its obligations under its working capital facility.
The offer of the CCH 2029 notes was not registered under the Securities Act, and the notes might not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Act.