US LNG company Tellurian disappointed by note offering
US LNG company Tellurian said August 31 it was disappointed that a listing of senior notes fell through, but stressed that it had plenty of liquidity.
Tellurian last week priced the public offering of 8.25% senior notes due 2028 at $50mn, with the proceeds going to potential upstream acquisitions. Prior to the pricing, the company said “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.”
Tellurian now said it can no longer proceed with the offering because authorities at the Nasdaq exchange said it could not list them “due to a procedural interpretation.”
“Of course, we are disappointed with Nasdaq’s decision and wish it would have advised us earlier in the process,” Chairman Charif Souki said. “The good news is that Tellurian has plenty of liquidity, we achieved a BBB+ investment grade rating, and we established a viable market for our debt securities.”
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 June exercised a long-term lease option for the planned Driftwood LNG export facility in Louisiana and agreed to terms for a sales and purchase agreement with commodities trader Vitol.