By Will Feuer
Tellurian Inc., which operates numerous pure fuel property, mentioned it struck a $1 billion sale-leaseback deal for its 800-acre property for use for its proposed Driftwood liquefied pure fuel terminal facility in Lake Charles, Louisiana.
The corporate mentioned it’s going to promote its pursuits within the property for $1.0 billion and lease it again for 40 years at a capitalization charge of 8.75% and with annual lease escalators of three%, the corporate mentioned in a securities submitting. Tellurian’s Driftwood LNG LLC subsidiary can even should publish a letter of credit score equal to a yr’s lease, amongst different necessities.
Shares of Tellurian rose nearly 6% to $1.25 in premarket buying and selling.
The corporate the deal is with a New York-based institutional investor that has about $120 billion in property underneath administration.
Write to Will Feuer at Will.Feuer@wsj.com