Tellurian withdraws senior note offering to raise $50 million

U.S. LNG project developer Tellurian has canceled its recently announced underwritten public offering of $50 million aggregate principal amount of 8.25 per cent senior notes.

Tellurian states its goal is to build a low-cost, global LNG business. Based in Houston, Texas, its common stock is listed on the Nasdaq Capital Market under the symbol “TELL.”

Recently, the LNG project developer announced it priced the underwritten public offering of $50 million aggregate principal amount of 8.25 per cent senior notes due 2028.

However, Nasdaq informed on Friday that it would not list the bonds due to a procedural interpretation.

Charif Souki, the company’s executive chairman, commented on the situation.

“Of course, we are disappointed with Nasdaq’s decision and wish it would have advised us earlier in the process. ...Tellurian has plenty of liquidity, we achieved a BBB+ investment grade rating, and we established a viable market for our debt securities,” he said.

It also announced that the underwriters of the recent public offering of its common stock exercised their option to purchase an additional 5,250,000 shares. This brings the total shares purchased to 40,250,000.

The total additional gross proceeds from the exercise of the option are approximately $15.75 million.