Cheniere Energy Inc. has agreed to sell its 30% limited partner interest in Freeport LNG Development LP to Zachry American Infrastructure LLC, a member of the Zachry group of companies in San Antonio, TX, and Hastings Funds Management (USA) Inc., a subsidiary of Westpac Banking Corp., which is acting on behalf of institutional investors. Net proceeds of about $104 million will be used to pay down a portion of the $400 million, 9.75% term loan held by a Cheniere subsidiary. The transaction is in-line with Cheniere’s strategy of improving its capital structure and reducing debt, the company said, and is expected to close in the second quarter subject to due diligence and regulatory approvals. Freeport LNG Development owns and operates an LNG receiving and regasification terminal on Quintana Island in Texas. Houston-based Cheniere is primarily engaged in LNG related businesses and owns and operates the Sabine Pass LNG terminal and Creole Trail pipeline in Louisiana.

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.