Energy company Tellurian Inc. (TELL) has announced the upcoming sales of a new issue of baby bonds.
This issue will have a maturity date on August 31,2028. An early redemption period will begin 8/31/2023 and bonds will be redeemable on a sliding bonus scale starting at $25.75 and reducing by 25 cents/bond annually until 8/30/2026. After this date redemption is at $25. Of course all redemptions include accrued interest.
This issue will not be rated.
The permanent ticker will likely be TELLL when it begins trading on the NASDAQ – there will be no OTC grey market trading.
Deep due diligence is required as this company is small and generating substantial losses
The preliminary prospectus can be found here.
af caught this one late today.
3 thoughts on “Tellurian Inc. to Sell New Baby Bond”
Early stage LNG development. 2020 Revenue of $37M, Interest Expense $43M, Net Loss $210M.
Hmm.. market value down about 1/3 since 6/30 per Yahoo. $1.3Billion Hit sub-dollar price last year.
Contract with Bechtel Construction for $15.5B facility in La. How do they swing that?
One person in management founded Cheniere Energy – interesting.
My spin: A Lego set with some parts missing. Early stage and speculative in a commodity business. Passionate supporters on both sides. Experienced management (pro) vs. Qatar (con) . Concern: a small company with a few big agreements. Impending prosperity or Hoegh 2.0?
I am a long term holder not a day trader / flipper so I’m not a fan of early calls. If a company improves, you get cashed out and have rollover risk. If it does poorly, you won’t see the extra 75 cents.
FYI: company CEO has background presentations on YouTube.
Just my opinion.