Tellurian Inc. (NYSE American: TELL) has recently announced a crucial agreement for the amendment of certain debt instruments, which is expected to bolster the company's near-term liquidity and provide flexibility for the successful completion of the sale of its upstream assets. The agreement includes a reduction in Tellurian’s minimum cash balance requirement and the ability for the company to make its upcoming interest payments in-kind.
Octávio Simões, the Chief Executive Officer of Tellurian, emphasized the significance of this debt agreement, stating, “This amendment to our debt agreement is pivotal towards establishing a sustainable capital structure and accelerating our strategic priority, Driftwood LNG. It also provides us the time and flexibility to complete the sale of our upstream assets in a manner that maximizes value for our shareholders while we maintain our focus on the intensive negotiations associated with the commercialization of Driftwood LNG.”
Regarding the company's strategic focus, Tellurian Inc. aims to create value for shareholders by establishing a low-cost, global natural gas business to deliver natural gas to customers worldwide profitably. The company is actively developing a portfolio of LNG marketing and trading infrastructure, including an approximately 27.6 million tonnes per annum (mtpa) LNG export facility and an associated pipeline. Tellurian is headquartered in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL”.
In reaction to this news, the company's shares have shifted by -14.0%, and are currently trading at a price of $0.73.
The company's full 8-K submission is available here.
