Benzinga | Aug 31, 2021 04:29PM EDT

Tellurian Says Withdraws Senior Note Offering, Announces Exercise Of Common Stock Over-Allotment Option

Tellurian Inc. (Tellurian) (NASDAQ:TELL) announced today that it will not proceed with its underwritten public offering of $50 million aggregate principal amount of 8.25% senior notes due 2028 which was successfully priced last Thursday night, August 26, 2021. Nasdaq informed Tellurian on Friday that it would not list the bonds due to a procedural interpretation.

Tellurian Executive Chairman Charif Souki said, "Clearly the massive retail investment market has been disruptive to the old rules guiding institutional investing, first in equities and now in bonds. Of course, we are disappointed with Nasdaq's decision and wish it would have advised us earlier in the process. The good news is that Tellurian has plenty of liquidity, we achieved a BBB+ investment grade rating, and we established a viable market for our debt securities. Tellurian appreciates the continued support from its sophisticated and well-informed retail investors, and we hope to have another debt offering in the future."

Tellurian also announced that the underwriters of its recent public offering of its common stock exercised their option to purchase an additional 5,250,000 shares, bringing the total shares purchased to 40,250,000. The total additional gross proceeds (before underwriters' compensation and estimated expenses) from the exercise of the option are approximately $15.75 million.