SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2023 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
NOTE 17 — SUBSEQUENT EVENTS
Debt Refinancing
On August 8, 2023, we entered into a private placement securities purchase agreement (the “SPA”) with an institutional investor pursuant to which we agreed to issue and sell $250.0 million aggregate principal amount of 10% Senior Secured Notes due October 1, 2025 (the “Senior Notes”) and approximately $83.3 million aggregate principal amount of 6% Secured Convertible Notes (the “Secured Convertible Notes”) due October 1, 2025 (collectively the “Replacement Notes”). Net proceeds from the Replacement Notes of approximately $299.4 million will be used to satisfy the outstanding principal repayment obligation under the Convertible Notes.
The Replacement Notes will be collateralized by the Company’s equity interests in Tellurian Production Holdings and mortgages of the material real property natural gas assets of Tellurian Production Holdings and its subsidiaries. The Replacement Notes indentures will contain financial and non-financial covenants, including a minimum cash covenant of $50.0 million. The Replacement Notes will have quarterly interest cash payments, plus payments of approximately 3.0 million shares of common stock per quarter (or a total of approximately 25.7 million shares). On or after October 1, 2024, the holders of the Replacement Notes may redeem up to the entire principal amount of the Replacement Notes at par, plus accrued and unpaid interest, if the Company’s liquidity fails to meet or exceed a specified threshold.
At-the-Market Program Subsequent to June 30, 2023, and through the date of this filing, we issued approximately 8.5 million shares of our common stock under our at-the-market equity offering program for net proceeds of approximately $12.4 million. As of the date of this filing, we have availability to raise aggregate gross sales proceeds of approximately $474.0 million under this at-the-market equity offering program.
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