Cheniere extends cash offer for existing notes
US LNG company Cheniere Energy on September 13 extended a cash offer for outstanding senior notes, less than a week after announcing its first-ever cash dividend.
The company said it began a cash tender offer to purchase any and all of the $1.1bn of its outstanding 5.625% notes due 2026. The same day, it said it intended to offer $1.2bn of senior notes due 2032, using those proceeds for refinancing.
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Cheniere on September 8 relayed plans for about $1bn in annual debt repayment and said it intended to issue a quarterly dividend of around $0.33/share payable in November, a first. Dividends could grow moving forward at the “mid-single digit” rate, the company added.
Cheniere operates LNG export terminals at Sabine Pass in Louisiana and Corpus Christi in Texas, with production capacity of around 45mn metric tons/year of LNG either in operation or under construction.
The company plans to advance a third phase of operations at Corpus Christi, which was described as a 10 mt/yr “shovel-ready” project, toward a final investment decision in 2022. Train 6 at Sabine Pass is expected to be finished by the first half of next year.