Tellurian Announces Public Offering of Senior Secured Notes

Rhea-AI Summary

Tellurian Inc. (NYSE American: TELL) has announced plans for an underwritten public offering of units consisting of 11.25% senior secured notes due 2027, valued at $1,000 per note, along with warrants for purchasing common stock. Proceeds will support the construction of the Driftwood Project. The offering is under an effective shelf registration statement with no assurance regarding its completion or terms. B. Riley Securities, Inc. is the sole bookrunning manager for this offering.

Positive

• Intended use of proceeds supports construction of the Driftwood Project, potentially enhancing future revenue.
• Offering includes senior secured notes, which may appeal to risk-averse investors.

Negative

• No guarantee of successful offering completion may raise investor concerns.
• Potential dilution of shares could affect current shareholders if warrants are exercised.

HOUSTON--(BUSINESS WIRE)-- Tellurian Inc. (Tellurian or the Company) (NYSE American: TELL) today announced that it intends to offer and sell units consisting of 11.25% senior secured notes due 2027 ($1,000 principal amount per note) and warrants to purchase shares of Tellurian common stock in an underwritten public offering. There can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering. The Company intends to use the net proceeds from the offering by contributing them to the Driftwood Project entities to support the construction of the Driftwood Project.

B. Riley Securities, Inc. is acting as sole bookrunning manager 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 units 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, 2021, 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/20220828005037/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 public offering on AMEX: TELL?

The public offering aims to raise funds to support the construction of the Driftwood Project.

What are the details of the senior secured notes being offered by Tellurian?

The offering includes 11.25% senior secured notes due 2027, with a principal amount of $1,000 per note.

Who is managing Tellurian's public offering?

B. Riley Securities, Inc. is acting as the sole bookrunning manager for the offering.

What risks are associated with the public offering by Tellurian?

Risks include uncertainty around the offering's completion and potential dilution for current shareholders.