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Updated December 28th, 2023 at 21:34 IST

Tellurian to issue shares to institutional investor to reduce debt

Tellurian's Driftwood project has seen many setbacks including the cancellation of LNG supply deals.

Business Desk
Domestic natural gas prices slashed
Domestic natural gas prices slashed | Image:IGL
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In a bid to reduce debt, Liquefied natural gas firm Tellurian has agreed to issue about 47.9 million shares of its common stock to high trail, an institutional investor, to extinguish some of its previous bonds, it said on Thursday.

Shares of the company rose 9 per cent to $1.04 in morning trading.

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The company said $37.9 million out of $250 million of a 2025 bond would be extinguished and it would amend certain terms of its debt agreements, according to a regulatory filing.

Tellurian also said upon issue of the shares, the company will be deemed to have satisfied its obligations to make the cash interest payments due in respect of debt on Jan. 1.

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On Wednesday, a filing showed that another investor Chatterjee Fund Management had increased its stake in Tellurian to 7.3 per cent, from 5.2 per cent previously.

Tellurian's Driftwood project has seen many setbacks including the cancellation of LNG supply deals.

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With Reuters Input

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Published December 28th, 2023 at 21:34 IST

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