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Tellurian Plunges After Axing $1 Billion Bond for LNG Plant

  • Shares lose almost 20% of value as equity investors flee
  • Company was to use financing to kickstart gas-export project
Updated on

Tellurian Inc. withdrew a $1 billion high-yield bond sale, leaving the future of its US natural gas export project in limbo. The stock plunged 24%.

Citing uncertainty in the junk-bond market, the Houston-based company halted the offering of senior secured notes and warrants on Monday. Tellurian had previously sweetened the deal to include a sky-high 12.5% all-in yield, friendlier terms for investors and collateral that included shale-gas fields.