TELZ: 8.25% Bond From A Future LNG Export Company

Summary

• Tellurian is at the start of a multi-year project to build a $12B vertically integrated LNG export business.
• TELL's balance sheet is very strong with $57M of debt and $210M of cash, but will get significantly more leveraged as they borrow to finance their vision.
• TELL plans to borrow heavily from banks at a rate I estimate will be L+4% which implies that TELZ should yield ~6%.
• A key risk is that LNG prices could go below TELL's breakeven rate.
• I do much more than just articles at Yield Hunting: Alt Inc Opps: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

onurdongel/E+ via Getty Images

This report was written by our resident preferreds and baby bonds expert, Landlord Investor. He writes exclusively on the Yield Hunting marketplace service. This article was published to members on Nov 13th.

Tellurian (TELL) is an LNG company with a

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TELZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.