U.S. LNG project developer Tellurian intends to offer and sell senior secured notes and use the funds for the Driftwood project entities to support the construction of the Driftwood LNG.
On 29 August, Tellurian said it intends to offer and sell units consisting of 11.25 per cent senior secured notes due 2027 ($1,000 principal amount per note) and warrants to purchase shares of Tellurian common stock in an underwritten public offering.
Tellurian said there can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering.
The company intends to use the net proceeds from the offering by contributing them to the Driftwood project entities to support the construction of the Driftwood LN G project.
The offering is being made pursuant to an effective shelf registration statement of the company previously filed with the Securities and Exchange Commission (the SEC). The offering may be made only by means of a prospectus supplement and the accompanying prospectus.
B. Riley Securities is acting as the sole bookrunning manager for the offering.
Driftwood LNG is an approximately 27.6 milion tonnes per annum (mtpa) liquefaction export facility near Lake Charles. Its phase one will include two LNG plants with an export capacity of up to 11 mtpa. Its construction started in March. It expects its first LNG in 2026.