Tellurian shares are trading higher. The company announced $37.9 million of 10% senior secured notes due 2025 will be extinguished and it will issue 47.9 million shares to an institutional investor.
Portfolio Pulse from Benzinga Newsdesk
Tellurian Inc. (TELL) announced that it will extinguish $37.9 million of its 10% senior secured notes due in 2025. In exchange, the company will issue 47.9 million shares to an institutional investor. This move is likely aimed at reducing debt and interest expenses while diluting equity.
December 28, 2023 | 3:43 pm
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NEUTRAL IMPACT
Tellurian Inc. is reducing its debt by extinguishing $37.9 million of 10% senior secured notes and will issue 47.9 million shares to an institutional investor, which may lead to equity dilution.
The extinguishing of debt is positive as it reduces the company's liabilities and interest expenses. However, the issuance of new shares will dilute existing shareholders' equity. The net impact on the stock price could be neutral in the short term as the market balances these two effects.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100