Annual report pursuant to Section 13 and 15(d)

Debt Issuance Costs

v2.4.0.6
Debt Issuance Costs
 12 Months Ended
Dec. 31, 2012
DEBT ISSUANCE COSTS [Abstract]  
Debt Issuance Costs
DEBT ISSUANCE COSTS
 
We have incurred debt issuance costs in connection with our long-term debt. These costs are capitalized and are being amortized over the term of the related debt. The amortization of debt issuance costs associated with the 2016 Notes and 2020 Notes was recorded as interest expense. The amortization of the debt issuance costs associated with the Liquefaction Credit Facility for the construction of Train 1 and Train 2 of the Liquefaction Project was capitalized. As of December 31, 2012, we had capitalized $220.9 million of costs directly associated with the arrangement of debt financing, net of accumulated amortization, as follows (in thousands): 
Long-Term Debt
 
Debt Issuance Costs
 
Amortization Period
 
Accumulated
Amortization
 
Net Costs
Liquefaction Credit Facility
 
$
212,795

 
7 years
 
$
(12,728
)
 
$
200,067

2016 Notes
 
30,057

 
10 years
 
(18,030
)
 
12,027

2020 Notes
 
9,092

 
8 years
 
(237
)
 
8,855

Total
 
$
251,944

 
 
 
$
(30,995
)
 
$
220,949