Exhibit 10.12

 

LOGO   February 25, 2005

 

To:    Sabine Pass LNG, L.P.    From:    Societe Generale, New York
Attn:    Mr. Graham McArthur    Attn:    IRD Documentation
     717 Texas Avenue    Tel:    212-278-7145 / 7087 / 7182
     Houston, TX 77002    Fax:    212-278-7650
Tel:    (832) 204-2290          
Fax:    (713) 659-5459          
Re:    SGNY Ref # DFP0510624          

 

Dear Mr. McArthur:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Swap Transaction entered into between us on the Trade Date specified below (the “Transaction”).

 

The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated in this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

 

This Confirmation constitutes a “Confirmation” as referred to in, and supplements, forms part of and is subject to, the 1992 ISDA Master Agreement dated as of [TRADE DATE], as amended and supplemented from time to time (the “Agreement”), between Societe Generale, New York Branch (“Party A”) and Sabine Pass LNG, L.P. (“Party B”). All provisions contained in the Agreement govern this Confirmation except as expressly modified below.

 

1. The terms of the particular Transaction to which this Confirmation relates are as follows:

 

Notional Amount:    See attached Notional Schedule
Trade Date:    February 25, 2005
Effective Date:    March 25, 2009
Termination Date:    March 25, 2012, subject to adjustment in accordance with the Modified Following Business Day Convention
Fixed Amounts:     

Fixed Rate Payer:

   Party B

Fixed Rate Payer

    

 

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Payment Dates:

   The 25th of each March and September, commencing September 25, 2009, up to and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention

Fixed Rate:

   4.980%

Fixed Rate

    

Day Count Fraction:

   Actual/360
Floating Amounts:     

Floating Rate Payer:

   Party A

Floating Rate Payer

    

Payment Dates:

   The 25th of each March and September, commencing September 25, 2009, up to and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention

Floating Rate Option:

   USD-LIBOR-BBA

Floating Rate for initial

    

Calculation Period:

   To be determined

Designated Maturity:

   Six month

Spread:

   None

Floating Rate

    

Day Count Fraction:

   Actual/360

Reset Dates:

   The first day of each Calculation Period

Compounding:

   Inapplicable
Business Days:    New York and London
Calculation Agent:    Party A, or as stated in the Agreement

 

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2. Account Details

 

Payments to Party A:    Federal Reserve Bank of New York
     ABA 026-004-226
     F/O Societe Generale, NY
     Account No.: 9020721
Payments to Party B:    PLEASE ADVISE

 

3. Offices:

 

  (a) The Office of Party A for the Transaction is New York; and

 

  (b) The Office of Party B for the Transaction is Houston, Texas.

 

4. Non-Reliance:

 

Each party represents that (i) it is not relying upon any advice (whether written or oral) of the other party to this Transaction, other than the representations expressly set forth in the Agreement or this Confirmation; (ii) it has made its own decisions in entering into this Transaction based upon advice from such professional advisors as it has deemed necessary; and (iii) it understands the terms, conditions and risks of this Transaction and is willing to assume (financially and otherwise) those risks.

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing one copy of this Confirmation and returning it to us.

 

Yours sincerely,
SOCIETE GENERALE,
NEW YORK BRANCH
By:  

/s/ Liliana Gowdie


Name:   Liliana Gowdie
Title:   Vice President
By:  

/s/ Christopher Frost


Name:   Christopher Frost
Title:   Managing Director

 

Confirmed as of the date first written above:

 

SABINE PASS LNG, L.P.
By:  

/s/ Graham McArthur


Name:   Graham McArthur
Title:   Treasurer

 

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NOTIONAL SCHEDULE

 

Period Start

Date


   Period End
Date


  

Notional

Amount

(USD)


3/25/2009

   9/25/2009    350,000,000

9/25/2009

   3/25/2010    345,350,000

3/25/2010

   9/27/2010    340,500,000

9/27/2010

   3/25/2011    335,500,000

3/25/2011

   9/26/2011    330,350,000

9/26/2011

   3/26/2012    325,050,000

 

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