CQH IPO Preview Dec 2013

Cheniere Energy Partners LP Holdings, LLC (ticker CQH) is currently out on its IPO roadshow and looking to raise $600 million by selling 30 million shares (before the over-allotment) at a mid-point price of $20. They expect to price the deal Thursday December 12.

CQH is a Delaware limited liability company whose only business will consist of owning Cheniere Energy Partners, LP (CQP) units. CQP owns and operates LNG regasification facilities and, adjacent to these facilities, is currently constructing the Liquefaction Project.

CQH was formed to hold part of the CQP interests that are owned by Cheniere Energy, Inc. (LNG), thereby allowing LNG to segregate its lower risk, stable, cash flow generating assets from its higher risk, early stage development projects and marketing activities. Cheniere Energy, Inc. believes that an initial public offering of equity interests in CQH to fund LNG’s early stage development and marketing activities will provide LNG with a lower-cost source of capital funding than other alternatives.

CQH will not hold any of the General Partner Incentive Distribution Rights for CQP. The GP 2% economic interest and the Incentive Distribution Rights in CQP will continue to be held by Cheniere Energy, Inc. (LNG). You can find the organization structure on page 26 of the roadshow slides and here is a link to the chart in their IPO prospectus: Org Chart.

Monthly Analytics subscribers, CQH will NOT be added to the full MLP Protocol Analytics since it will not pay substantive dividends until some time after March 2017.

About Philip Trinder

President of MLP Protocol, investor, trader, and proponent of Master Limited Partnerships.
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