Tellurian Inc. remains “bullish” on its Driftwood LNG project in Louisiana, the Houston-based company’s CEO said following a recent multimillion-dollar financing.

According to an April 28 company release, Tellurian executed an agreement to sell $56 million of zero-coupon, unsecured notes. In addition to providing the lender with warrants to purchase up to 20 million shares of Tellurian common stock, Tellurian said it received $50 million in gross proceeds from the financing.

In conjunction with the financing, Tellurian said it also entered an agreement to amend its 2019 term loan, including a reduction of the principal amount by $17.1 million.

The loan amendment agreement provides for a pay-down of $2.1 million in cash and converts $15 million of principal value into equity through the issuance of approximately 9.3 million shares to the lender. Additionally, it provides the lender with warrants to purchase up to approximately 4.7 million shares of Tellurian common stock, subject to customary closing conditions.

Tellurian’s unaudited cash and cash equivalents balance pro forma for the financing transaction would have been about $100.7 million as of March 31, the release said.

In a statement commenting on the recent financing, Meg Gentle, Tellurian’s president and CEO, said: “Tellurian is building cash reserves during this challenging time in global markets, positioning for a strong emergence from COVID-19 restrictions. We remain bullish on long-term natural gas demand growth, underscoring the acute need for Driftwood LNG.”

Driftwood LNG, owned by Tellurian, is developing an LNG production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, La. Once complete, the terminal will be able to export up to 27.6 million tonnes of LNG per year to customers worldwide, according to the company’s website.

Tellurian said its Driftwood project will be among the lowest-cost LNG liquefaction operations. First production could come as soon as 2023.

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