Why Tellurian Stock Cratered 40% in September
Shares of Tellurian (NYSEMKT: TELL) plummeted 40.3% in September, according to data provided by S&P Global Market Intelligence. Weighing on the liquefied natural gas (LNG) stock was news that it pulled a bond offering and terminated two sales contracts as it shifted the financing strategy for its proposed Driftwood LNG project.
In late August, Tellurian announced its intentions to offer and sell units consisting of 11.25% senior secured notes due in 2027 and warrants to purchase shares in the company. It intended to use the proceeds to support the construction of its Driftwood LNG project.
However, the company withdrew that offering in mid-September due to uncertain conditions in the high-yield bond market as the Federal Reserve raised interest rates. That increased investor concern about how the company might fund its proposed export facility.
Source Fool.com
