.Tellurian asks shareholders to approve doubling of authorized shares
REUTERS 2:42 PM ET 4/13/2023
HOUSTON, April 13 (Reuters) - Tellurian on Thursday asked its shareholders to vote on a proposal to double its share count as the liquefied natural gas (LNG) developer seeks to finance its multi-billion-dollar export terminal.
The proposal - to increase authorized shares to 1.6 billion - if approved would provide additional financial flexibility while diluting the stakes of existing shareholders, the filing said. Shareholders will vote on the proposal on June 7, the company said in a proxy filing.
Its Driftwood LNG export project received a U.S. export permit in March 2017, but has not achieved a financial go-ahead. The roughly $13 billion first phase of the project needs to close simultaneously on equity, bank debt and high-yield financing to move ahead, the company's chief executive recently said.
As a first step in the fundraising, an undisclosed investor group proposed to pay $1 billion for the land where the plant is being built and lease it back to the company, Executive Chairman Charif Souki said last week.
The company's proxy filing shows executive pay fell last year as contracts with potential customers fell through and Tellurian began initial construction using its own cash. It aims to complete the first phase of the project in 2026.
Souki was paid $8.2 million last year, down from $20.1 million the prior year, while President Octavio Simoes earned $4.3 million, down from $8.1 million in 2021, the filing showed. (Reporting by Gary McWilliams; Editing by Daniel Wallis)
