Tellurian Announces Pricing of Public Offering of Senior Notes

Rhea-AI Summary

Tellurian has priced a public offering of $50 million in 8.25% senior notes due 2028. There is also a 30-day option for underwriters to purchase an additional $7.5 million in senior notes. The proceeds will be used for general corporate purposes, including potential acquisitions of upstream assets. The offering is expected to close around November 10, 2021, pending customary closing conditions. B. Riley Securities, Ladenburg Thalmann, and William Blair are joint book-running managers for this offering.

Positive

• Public offering of $50 million in senior notes could strengthen the balance sheet.
• Net proceeds intended for potential acquisition of upstream assets, which may enhance growth opportunities.

Negative

• Offering of senior notes could dilute existing shareholders' equity.
• The high interest rate of 8.25% may indicate increased financial risk.

HOUSTON--(BUSINESS WIRE)-- Tellurian Inc. (Tellurian or the Company) (NYSE American: TELL) today announced that it has priced an underwritten public offering of $50 million aggregate principal amount of 8.25% senior notes due 2028. The Company has granted the underwriters a 30-day option to purchase an additional $7.5 million aggregate principal amount of senior notes in connection with the offering. The Company intends to use the net proceeds from this offering for general corporate purposes, including the potential acquisition of upstream assets. The offering is expected to close on or about November 10, 2021, subject to satisfaction of customary closing conditions.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Company, L.L.C. are acting as joint book-running managers for the offering. EF Hutton, division of Benchmark Investments, LLC, is acting as lead manager, and Aegis Capital Corp., Boenning & Scattergood, Inc., Colliers Securities LLC, Newbridge Securities Corporation, Revere Securities LLC, Wedbush Securities Inc. and B.C. Ziegler and Company are acting as co-managers for the offering.

The offering is being made pursuant to an effective shelf registration statement of the Company previously filed with the Securities and Exchange Commission (the SEC). The offering may be made only by means of a prospectus supplement and the accompanying prospectus. Copies of the preliminary prospectus supplement for the offering and the accompanying prospectus may be obtained by sending a request to B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209; Telephone: (703) 312-9580, or by emailing prospectuses@brileyfin.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Tellurian Inc.

Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL.”

CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS

Statements in this press release related to the Company’s public offering of senior notes and all other statements other than statements of historical fact are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. Tellurian urges you to carefully review and consider the cautionary statements made in this press release, the registration statement, the “Risk Factors” section of the preliminary prospectus supplement for the offering and of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and other filings with the SEC for further information on risks and uncertainties that could affect the Company’s business, financial condition and results of operations. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. Tellurian undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this press release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211105005849/en/

Media:

Joi Lecznar

EVP Public and Government Affairs

Phone +1.832.962.4044

joi.lecznar@tellurianinc.com

Investors:

Matt Phillips

Vice President, Investor Relations

Phone +1.832.320.9331

matthew.phillips@tellurianinc.com

Source: Tellurian Inc.

FAQ

What is the purpose of Tellurian's recent public offering?

The offering aims to raise $50 million for general corporate purposes, including potential acquisitions of upstream assets.

What are the details of Tellurian's senior notes offering?

Tellurian priced $50 million in 8.25% senior notes due 2028, with an option for additional $7.5 million available to underwriters.

When is the expected closing date for Tellurian's offering?

The offering is expected to close on or about November 10, 2021, subject to customary closing conditions.

Who are the underwriters for Tellurian's public offering?

B. Riley Securities, Ladenburg Thalmann & Co. Inc., and William Blair & Company, L.L.C. are acting as joint book-running managers.

How might Tellurian's public offering affect its shareholders?

The offering may dilute existing shareholders' equity and increase financial risk due to the 8.25% interest rate.