Tellurian in $500 million senior notes offering

US LNG firm Tellurian, the developer of the Driftwood project in Louisiana, said it has executed definitive agreements to sell $500 million principal amount of senior secured convertible notes.

The offering, subject to customary closing conditions, will bear interest at 6 percent per year, expiring May 1, 2025, and will be convertible into shares of Tellurian common stock at an initial conversion price of $5.724, according to a statement o Wednesday.

Roth Capital Partners and Citigroup served as placement agents for the offering, Tellurian said.

In March, Tellurian issued a limited notice to proceed to Bechtel to begin construction of its Driftwood LNG terminal.

Tellurian is still working to complete financing for the project and expects to start first LNG exports in 2026.

In addition, the Houston-based firm signed three 10-year LNG supply deals for the Driftwood project for a total of 9 mtpa. These include contracts with Gunvor, Vitol as well as Shell.

Phase one of the project will include two LNG plants near Lake Charles with an export capacity of up to 11 mtpa. The full project will have 27.6 mtpa liquefaction capacity.

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