US LNG developer Tellurian intends note offering [UPDATE]
US LNG company Tellurian said August 25 that it intended to offer and sell senior notes due 2028 to help fund upstream acquisitions.
A handful of securities companies are acting as co-manager for the offer, though the company was cautious about the end result. “There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” it said. Nevertheless, Tellurian said it would use the proceeds for general corporate purposes and for “potential” acquisitions in the upstream energy sector.
On August 26, Tellurian said the offering, expected to close on or about August 31, would consist of $50mn aggregate principal amount of 8.25% senior notes. The underwriters have a 30-day option to purchase an additional $7.5mn aggregate principal amount.
The company in early August announced the public offering of 35mn shares of common stock priced at $105mn, before expenses and compensation for underwriters. Underwriters for the public offering have a 30-day option to purchase up to 5.24mn shares.
Tellurian announced Q2 2021 results showing a cash and cash equivalents balance of $111.9mn, with no borrowing obligations. Quarterly revenues from natural gas sales were about $5.6mn. Production at the end of 2021 is expected to be about 95mn ft3/day. The company reported a net loss for the quarter of $30.6mn but claimed a strong balance sheet with assets estimated at $328.2mn.
Tellurian in July signed a pair of LNG sales and purchase agreements with Anglo-Dutch major Shell related to the pending Driftwood LNG project in Louisiana.