Cheniere Increases and Prices Secondary Offering (LNG, CQP, BX)
Cheniere Energy Inc. (AMEX: LNG) increased the size of its secondary stock offering from 17 million to 21 million shares and priced the offering at $15.10/share this morning. Credit Suisse, the sole underwriter, was granted a 30-day overallotment option of…
Cheniere and its subsidiary, Cheniere Energy Partners LP (AMEX: CQP), have received approvals to convert the Sabine Pass liquefied natural gas receiving terminal into an export terminal. Cheniere Energy Partners will build the $10 billion liquefaction facilities, and construction could start in less than a month.
But today’s secondary stock offering is being used “for general corporate purposes, including repayment of indebtedness.” Two weeks ago Cheniere Energy Partners announced a $2 billion investment from Blackstone Group LP (NYSE: BX) to get construction going on the first production facilities.
Investors are not happy about the pricing of the secondary offering and shares of Cheniere Energy Inc. are down about -5.7% at $15.10, after closing at $16.01 last night. The stock’s 52-week range is $3.17-$17.07.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
