US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said it would not proceed with its previously announced offering of senior secured notes.
The firm said in a statement it withdrew the offering due to “uncertain conditions in the high-yield market”.
Tellurian did not provide any additional information in the statement.
The firm said in August it aimed to offer and sell units consisting of 11.25 percent senior secured notes due 2027 ($1,000 principal amount per note).
After that, Tellurian adjusted the terms of the offering to add better terms for investors and equity in its upstream assets.
Tellurian planned to use the proceeds from the offering to fund the construction of its Driftwood LNG plant.
The company 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).
In March, Tellurian issued a limited notice to proceed to compatriot engineering and construction giant Bechtel under its executed EPC contract to begin construction of phase one of the Driftwood LNG plant.
According to the latest update, Tellurian and Bechtel are moving forward with the works which include site preparation, concrete pile driving, offloading of concrete pile shipments, mobilization of construction equipment and tools, etc.