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Cheniere eyes $1.5bn raise

Funds to be used partly for construction of sixth train at Sabine Pass LNG

US liquefaction player Cheniere Energy plans to raise $1.5 billion, part of which will help fund the construction of a sixth train at the Sabine Pass terminal in Louisiana.

Cheniere said it would raise the funds through an offering of senior notes, which will bear interest at a rate of 4.5% per annum and will mature on 1 October 1 2029.

The close of the offering, which has been upsized from a previous target of $1 billion, is scheduled for 12 September.

In addition to funding the build-out of Sabine Pass Train 6, Cheniere intends to use the proceeds to prepay all of the outstanding term loans under its senior secured credit facilities due 2024 and for "general corporate purposes". The company sanctioned the sixth train at the Sabine Pass liquefied natural gas export facility earlier this year.

Cheniere said that after the proceeds have been applied to its term loans, an undrawn $750 million revolving credit facility will be left.

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