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LNG Developer Tellurian Sweetens Risky Debt Deal With Whopping 12.5% Yield

  • Firm added shale gas field assets on up to $1 billion bond
  • Success of offering may determine future of planned facility

Struggling to attract investment in a liquefied natural-gas export project conceived more than six years ago, Houston-based energy company Tellurian Inc. has sweetened a risky debt deal that already offers an eye-popping 12.5% yield. 

With credit markets again buckling this week as the Federal Reserve phases out the cheap-money era, Tellurian pledged more assets Tuesday that investors could claim in the event of a restructuring or bankruptcy to the $1 billion secured bond deal it announced at the end of August.