Tellurian plans new senior notes offering

US LNG firm Tellurian has revealed plans to sell more senior secured notes in order to fund the construction of its Driftwood LNG export project in Louisiana.

The firm said in a statement it aims to offer and sell units consisting of 11.25 percent 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.

“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 said.

Tellurian said it intends to use the net proceeds from the offering by contributing them to the Driftwood project entities to support the construction of its Driftwood LNG export plant.

B. Riley Securities is acting as sole bookrunning manager for the offering.

Earlier this year, Tellurian executed definitive agreements to sell $500 million principal amount of senior secured convertible notes.

Tellurian and compatriot engineering and construction giant Bechtel are moving forward with site preparation works for the Driftwood LNG export project.

In March, Tellurian issued a limited notice to proceed to Bechtel under its executed EPC contract to begin construction of phase one of the Driftwood LNG plant.

However, Tellurian is still working to complete financing for the first phase of the Driftwood project worth about $12.8 billion.

Phase one will include two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum (mtpa).

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