U.S. LNG player Tellurian has announced that it has secured US$50 million worth of financing and a reduction to its 2019 term loan.
Tellurian explained that it has agreed to sell $56 million of zero coupon, unsecured notes for gross proceeds of $50 million and provide the lender with warrants to purchase up to 20 million shares of Tellurian common stock, subject to customary closing conditions.
President and CEO Meg Gentle said: “Tellurian is building cash reserves during this challenging time in global markets, positioning for a strong emergence from COVID-19 restrictions. We remain bullish on long-term natural gas demand growth, underscoring the acute need for Driftwood LNG.”
Tellurian has also entered into an agreement to amend its 2019 term loan, including a reduction of the principal amount by $17.1 million. The agreement provides for a paydown of $2.1 million in cash, converts $15 million of principal value into equity through the issuance of 9.3 million shares to the lender, and provides the lender with warrants to purchase up to approximately 4.7 million shares of Tellurian common stock.