shares were tumbling Tuesday after the natural-gas producer announced that it would be withdrawing its public offering of senior secured notes.
(ticker: TELL) announced in late August it intended to offer and sell units consisting of 11.25% senior secured notes due 2027 and warrants to purchase common shares. The company had planned to use the proceeds from the offering “to support the construction of the Driftwood Project.” The high-yield bond sale was for $1 billion.
Driftwood is a liquefied natural gas (LNG) production and export terminal in Louisiana, according to the company’s website. When the project is completed, the terminal will be able to export more than 27 million tonnes of LNG per year to customers worldwide
In a statement late Monday, Tellurian said it withdrew the bond deal “due to uncertain conditions in the high-yield market.”
Shares of Tellurian sank 22% Tuesday to $3.02 and were on pace for the lowest close since the mid-summer. The stock has fallen more than 97% from its all-time closing high in November 1980, and has fallen 1.1% this year.
Write to Angela Palumbo at [email protected]