Tellurian sells $500mn of senior convertible notes
US LNG developer Tellurian said June 1 it had signed definitive agreements on the sale of $500mn in senior secured convertible notes with a 6% annual interest rate.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The notes will expire on May 1, 2025. They can be exchanged for common Tellurian stock at an initial conversion rate of $5.724/note, subject to customary adjustments.
Tellurian has been seeking financing for the initial development phase of its 27mn mt/yr Driftwood LNG project in Louisiana. Driftwood LNG's first phase will launch in 2026 and deliver 11mn mt/yr of liquefaction capacity. Tellurian has agreed commercial contracts covering 9mn mt/yr of the initial phase with Shell, Guvnor and Vitol, leaving 2mn mt/yr to market when the plant is brought online.
The development schedule kicked off on March 28 when Bechtel, the EPC contractor, was granted a limited notice to proceed for construction work.
Tellurian did not comment further on the convertible offering. NGW caught up with the company's CEO Octavio Simoes on May 25 at the recent World Gas Conference in South Korea.