Cheniere Corpus Christi Holdings Completes $1.5 Billion Issuance of Senior Notes

May 19, 2017

S&C client Cheniere Corpus Christi Holdings, LLC (CCH), a wholly owned subsidiary of Cheniere Energy, Inc. (Cheniere), completed a Rule 144A/Regulation S issuance of $1.5 billion (upsized from $1.0 billion) aggregate principal amount of 5.125% senior notes due 2027. The proceeds of the notes were used to prepay a portion of the principal amounts currently outstanding under its $8.4 billion seven-year senior secured term loan facility, which is in place to fund a portion of the expected construction costs of a natural gas liquefaction facility (the CCH terminal facility) and associated pipeline (the Corpus Christi Pipeline and together with the CCH Terminal Facility, the Project) near Corpus Christi, Texas.

This project is the second under development by Cheniere in the United States. Cheniere's first LNG project, Sabine Pass Liquefaction, recently exported its 100th cargo from the United States. The shipments from Sabine Pass have been the first exports of LNG from the contiguous United States in more than 50 years. The CCH terminal facility is expected to start operations in 2019 and will export LNG to buyers in Europe and Asia.

The S&C team was led by Inosi Nyatta, along with Daniel Biller, Alexander Metz and Mateo Aceves. Matthew Brennan provided advice on environmental matters. Christine Trent Parker provided advice on swaps and derivatives matters. Precious Nwankwo provided advice on ERISA matters.