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Nasdaq deals major setback to Tellurian bond offering

September 01, 2021

Energy Voice: 

The LNG developer had hoped to carry out an underwritten public offering of $50 million of senior notes, at 8.25%, due in 2028.

The company priced the notes on August 26 but had to drop its plans on August 31. It was to offer the notes in the “baby bond” market, available to retail investors.

The Nasdaq decision “disappointed” Tellurian, executive chairman Charif Souki said.

In comments on the company’s Youtube channel, Souki said Nasdaq interpreted the bond as an “equity type instrument”. As such, it would require different listing parameters.

“The institutional market is having a hard time keeping up with retail market and the accessibility of retail investors to different forms of investments,” Souki said.

Despite the disappointment, the chairman said the security had been very well received. “Secondly, we were rated by a reputable ratings agency at BBB+, in other words investment grade,” he said.

[ Ed Reed ] 

More: Nasdaq nixes Tellurian bond offering

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