Cheniere Energy closes $1 billion senior notes offering due 2035

Cheniere Energy, Inc. (NYSE:LNG), a $51.8 billion market cap energy company with strong financial metrics according to InvestingPro’s analysis, announced Thursday that its subsidiary, Cheniere Energy Partners (NYSE:CQP), L.P., has completed the sale of $1.0 billion in aggregate principal amount of 5.550% senior notes due 2035. The notes were issued in a private placement and are not registered under the Securities Act of 1933.

According to a press release statement based on a filing with the U.S. Securities and Exchange Commission, the notes were issued under an indenture dated September 18, 2017, as supplemented by a tenth supplemental indenture dated Thursday. The notes mature on October 30, 2035, and will accrue interest at 5.550% per annum, payable semi-annually on April 30 and October 30, starting April 30, 2026. The company maintains a solid financial position with $16.7 billion in revenue and $7.1 billion in EBITDA over the last twelve months.

The senior notes are unsecured obligations of Cheniere Partners and rank equally with its other existing and future unsubordinated debt. They are guaranteed by Cheniere Partners’ current and future subsidiaries that guarantee its revolving credit facility.

Cheniere Partners may redeem the notes, in whole or in part, at any time before April 30, 2035, at a redemption price equal to the greater of 100% of the principal amount or a specified make-whole amount, plus accrued and unpaid interest. On or after April 30, 2035, the notes may be redeemed at 100% of the principal amount plus accrued and unpaid interest.

The indenture includes customary terms, events of default, and covenants that limit the ability of Cheniere Partners and its guarantors to incur liens, enter into sale-leaseback transactions, and consolidate, merge, or dispose of assets, subject to certain limitations and exceptions.

In connection with the issuance, Cheniere Partners, its guarantors, and representatives of the initial purchasers entered into a registration rights agreement. Under this agreement, Cheniere Partners has agreed to use commercially reasonable efforts to register the notes with the SEC and offer to exchange them for registered debt securities with substantially similar terms. If Cheniere Partners does not meet its registration obligations within specified timeframes, it will be required to pay additional interest.

The information in this article is based on a press release statement and an SEC filing. According to InvestingPro’s Fair Value analysis, Cheniere Energy is currently trading near its Fair Value, suggesting balanced market pricing of its shares.

In other recent news, Cheniere Energy announced that its Board of Directors has approved the final investment decision for the Corpus Christi Midscale Trains 8 & 9 and Debottlenecking Project, which will add approximately 5 million tonnes per annum of liquefied natural gas capacity. This expansion is expected to increase Cheniere’s total production capacity by more than 10% to over 60 million tonnes per annum by 2028. UBS has reiterated its buy rating and $277 price target for Cheniere, citing the company’s expansion plans and shareholder return strategy as positive catalysts. The investment firm highlighted the Sabine Pass expansion project, which aims to increase capacity by approximately 20 million tonnes per annum through three liquefaction trains and de-bottlenecking opportunities.

Jefferies raised its price target on Cheniere Energy to $288, following the company’s final investment decision for the Corpus Christi Liquefaction Stage 3 Trains 8-9 expansion project. The firm noted that Cheniere plans to deploy more than $25 billion this decade to expand production capacity to approximately 75 million tonnes per annum, with long-term potential to reach around 100 million tonnes per annum. Mizuho (NYSE:MFG) also raised its price target for Cheniere to $268, maintaining an Outperform rating, citing the company’s strong positioning for growth and capital returns. Additionally, Cheniere plans to increase its annualized dividend by more than 10% from $2.00 to $2.22 per common share for the third quarter of 2025, subject to board approval.

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