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