Cheniere Energy Partners, L.P. current report, 30 September 2011

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Cheniere Energy Partners, L.P. - Form 8-K Summary

Business Context and Reporting Period

This Current Report on Form 8-K was filed by Cheniere Energy Partners, L.P. on September 30, 2011. The report discloses the completion of a secondary equity offering and the exercise of an over-allotment option to raise capital for general business purposes and expansion projects.

Key Financial Metrics

  • Proceeds from Option Units: Approximately $6,860,000 (net of estimated offering fees and expenses).
  • Units Sold in Option Exercise: 450,000 Common Units.
  • Price per Unit: $15.25 per Common Unit (consistent with the Concurrent Offering price).
  • General Partner Contribution: Approximately $140,000 received from the General Partner to maintain its 2% interest.
  • Use of Proceeds: General business purposes, specifically development costs for the Sabine Pass LNG terminal expansion.

Material Changes and Transactions

The filing details the closing of two distinct transactions initiated on September 14, 2011:

  1. Public Offering: Sale of 3,000,000 Common Units at $14.55 per unit (net of discounts) to the public via Citigroup Global Markets Inc. Closed on September 19, 2011.
  2. Concurrent Offering: Sale of 622,131 Common Units at $15.25 per unit to Cheniere Common Units Holding, LLC. Closed on September 19, 2011.
  3. Option Exercise: The underwriter waived its right to purchase 450,000 Option Units. Consequently, the Partnership exercised its option to require the Purchaser (Cheniere Common Units Holding, LLC) to acquire all 450,000 Option Units. This transaction closed on September 30, 2011.

Outlook and Management Commentary

Management indicated that the net proceeds from the sale of the Option Units will be utilized for general business purposes. A specific allocation is designated for the development costs associated with the Partnership's expansion project to add liquefaction capacity at the Sabine Pass LNG terminal. The filing does not provide specific forward-looking guidance on revenue or earnings projections beyond the use of these specific proceeds.

Investor Verification Checklist

  • Verify the total capital raised from the combined Public Offering, Concurrent Offering, and Option Unit exercise.
  • Confirm the impact of the new Common Units on the total outstanding unit count and potential dilution.
  • Review the specific timeline and budget for the Sabine Pass LNG terminal expansion project.
  • Check subsequent filings for the final allocation of the $6.86 million in net proceeds.