Cheniere Corpus Christi Holdings, LLC Completes $1.5 Billion High Yield Notes Offering

December 9, 2016

S&C advised Cheniere Corpus Christi Holdings, LLC (CCH), a wholly owned subsidiary of Cheniere Energy, Inc., in the completion of a Rule 144A / Regulation S issuance of $1.5 billion aggregate principal amount of 5.875% senior notes due 2025. The proceeds of the notes were used to prepay a portion of the principal amounts currently outstanding under its term loan facility, which is in place to fund a portion of the expected construction costs of a natural gas liquefaction facility and associated pipeline near Corpus Christi, Texas.
 
The CCH terminal facility, which is currently under construction, is being developed for up to three natural gas liquefaction trains, three storage tanks and two marine berths that can each accommodate vessels with nominal capacity of up to 266,000 cubic meters. The Corpus Christi Pipeline, for which construction is expected to commence in early 2017, will be a 23-mile-long bi-directional natural gas pipeline originating at the CCH terminal facility and terminating north of Sinton, Texas, and includes a related compressor station, meter stations and interconnects with several existing interstate and intrastate pipelines. The Corpus Christi Pipeline is being designed to transport natural gas feedstock to the CCH terminal facility from the existing gas pipeline grid.
 
The S&C team was led by Inosi Nyatta, along with Daniel Biller, Alexander Metz and Alexander Smorczewski. Maria Alejandra Suarez, Douglas Sarro and Edward Bennett provided key assistance. Matthew Brennan provided advice on environmental matters. Christine Trent Parker provided advice on swaps and derivatives matters. Max O'Neill provided advice on tax matters. Dana Brodsky provided advice on ERISA matters.