|6 Months Ended|
Jun. 30, 2019
|Subsequent Events [Abstract]|
NOTE 15 — SUBSEQUENT EVENTS
Driftwood Project Equity Investment
On July 10, 2019, Driftwood Holdings entered into an equity capital contribution agreement (the “Contribution Agreement”) with Total Delaware Inc., an affiliate of TOTAL S.A. (“Total Delaware”), whereby Total Delaware agreed to make a $500.0 million capital commitment to Driftwood Holdings in exchange for Class A limited partnership interests in Driftwood Holdings. The closing of the transactions contemplated by the Contribution Agreement is subject to the satisfaction of certain closing conditions, including Tellurian reaching an affirmative FID with respect to “Phase 1” of the Driftwood Project.
LNG Sale and Purchase Agreement
Also on July 10, 2019, Tellurian Trading UK Ltd, a wholly owned subsidiary of the Company (“Tellurian Trading”), and Total Gas & Power North America Inc., an affiliate of TOTAL S.A. (“Total Gas & Power”) entered into a sale and purchase agreement pursuant to which Total Gas & Power has the right to purchase from Tellurian Trading approximately 1.5 Mtpa of LNG on a free on board basis at prices based on the JKM index price, subject to the terms and conditions of the agreement.
2019 Term Loan Additional Borrowing
On July 11, 2019, and as outlined in Note 7, Borrowings, Driftwood Holdings satisfied the criteria, pursuant to the terms of the 2019 Term Loan, and provided the notice of the delayed draw borrowings to the lender. On July 16, 2019, we received the remaining available borrowings under the 2019 Term Loan in the amount of $15.0 million. The additional borrowings will increase the amount of the Final Payment Fee.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef