HOUSTON, April 22 /PRNewswire-FirstCall/ -- Cheniere
Energy, Inc. ("Cheniere") (NYSE Amex: LNG) announced today that it
has agreed to sell its 30 percent limited partner interest in
Freeport LNG Development L.P. to Zachry American Infrastructure,
LLC, an independent member of the Zachry group of companies,
located in San Antonio, Texas, and
Hastings Funds Management (USA),
Inc., a wholly owned subsidiary of Westpac Banking Corporation,
acting on behalf of various institutional investors.
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The net proceeds of approximately $104
million will be used to pay down a portion of the
$400 million, 9.75% term loan held by
a Cheniere subsidiary. This transaction is in-line with Cheniere's
financial strategy of improving its capital structure and reducing
debt.
The transaction is expected to close in the second quarter of
2010 subject to meeting conditions precedent including satisfactory
completion of due diligence and regulatory approvals. Sagent
Advisors, Inc. is providing certain financial advisory services to
Cheniere in connection with the transaction.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG related businesses, and owns and operates the Sabine Pass
LNG receiving terminal and Creole Trail pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG receiving terminal. Cheniere is also the founder and holds
a 30% limited partner interest in another LNG receiving
terminal. Additional information about Cheniere Energy, Inc.
may be found on its web site at www.cheniere.com.
For additional information, please refer to the Cheniere Energy,
Inc. Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and
Exchange Commission.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical facts, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives and (ii) statements expressing beliefs and
expectations regarding the development of Cheniere's LNG receiving
terminal and pipeline businesses. Although Cheniere believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Cheniere's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in Cheniere's periodic reports
that are filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.
SOURCE Cheniere Energy, Inc.