Tellurian confirms $1B sale and leaseback deal for Driftwood LNG project (NYSE:TELL) - Seeking Alpha
Tellurian confirms $1B sale and leaseback deal for Driftwood LNG project (NYSE:TELL) | Seeking Alpha
Tellurian confirms $1B sale and leaseback deal for Driftwood LNG project
Tellurian Inc. (TELL) By:
Carl Surran, SA News Editor
25 Comments Sky_Blue/iStock via Getty Images
Tellurian (NYSE: TELL) +6.3% in early trading Wednesday after disclosing it entered a binding commitment with asset management firm Blue Owl Real Estate Capital for the sale and leaseback of ~800 acres of land for $1B.
The land had been owned and leased by Tellurian's ( TELL) Driftwood LNG subsidiary, and will be used for the proposed liquefied natural gas terminal facility in Lake Charles, Louisiana, the 8-K filing said.
Terms of the master lease will include an 8.75% capitalization rate, 3% annual rent escalators, and a requirement that Driftwood LNG post a letter of credit equal to 12 months of rent.
The Driftwood LNG project is planned to produce 27.6M metric tons/year of liquefied natural gas when ready.
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