Cheniere Energy up on loan deal

Cheniere Energy Inc.’s (AMEX:LNG) stock climbed 7% this morning after the Houston liquefied natural gas firm announced before the opening that it had closed a $250 million loan from GSO Capital Partners LP.

Houston-based Cheniere said the money will go toward repaying a $95 million bridge loan it took out in May. It also will fund a reserve account for payments related to the Sabine Pass LNG receiving terminal.

Cheniere CEO Charif Souki said the loan should provide the firm with enough liquidity to operate its business for a minimum of three years, whether or not it is successful securing cargoes or additional third party long-term terminal use agreements.

Cheniere’s general partnership, Cheniere Energy Partners LP (AMEX:CQP), also saw its stock rise this morning on the news that James Bennett, a managing director at GSO Capital Partners, had joined its board of directors in conjunction with the loan closing.

In April, Cheniere’s then-president and COO, Stan Horton, resigned his position after three years in the role. That month, the firm also cut more than half of its work force, citing a strategic shift related to the marketing of liquefied natural gas.

By mid-morning, Cheniere Energy’s stock is at $5.20, up $0.31 from Friday’s close. It has ranged between $2.47 and $41.84 in the past year.

For detailed price information and news stories on Cheniere Energy, click LNG.

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