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Tuesday, November 11, 2014

Asian buyout firm RRJ to invest $1 billion in U.S. LNG project, (AMEX: LNG)

Asian takeover firm RRJ Capital has increased its bet on the U.S liquefied natural gas (LNG) sector by agreeing to invest about $1 billion in convertible notes issued by Cheniere Energy Inc, the companies said in a statement on Tuesday. Hong Kong-based RRJ has the option to transfer part of the notes to Temasek Holdings, the statement said. The Singapore state investor is expected to take a "significant minority amount" of the $1 billion notes by the end of November, a person with direct knowledge of the deal told Reuters. The source declined to be identified as details of the Temasek investment are not public. Temasek declined to comment.RRJ and Temasek first agreed to purchase a 19.8 percent stake in Cheniere in May 2012, to help the U.S. energy company fund the country's first LNG export facility at Sabine Pass, Louisiana.A sharp rise in Cheniere Energy shares encouraged Temasek to sell its holding last year.The notes, with a six and a half year maturity offering 4.875 percent per annum interest rate, will convert into Cheniere's common stock at a price of $93.64, or 130 percent above Cheniere's closing price on Monday.

Cheniere Energy, Inc. (Cheniere) is engaged in liquid natural gas LNG-related businesses. Shares of LNG traded higher by 2.8% or $2.02/share to $74.05. In the past year, the shares have traded as low as $38.42 and as high as $85.00. On average, 3480980 shares of LNG exchange hands on a given day and today's volume is recorded at 973543.