Shares of natural gas producer Tellurian (NYSE:TELL) are up in double digits today after the company announced a sale and leaseback transaction for about 800 acres of land.
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The land is to be used for Driftwood’s LNG terminal in Louisiana. The company has entered into a binding LoI (letter of intent) with an institutional investor with $120 billion in AUM under the transaction.
Under the transaction, the land parcel will be sold for $1 billion and leased back for 40 years by Driftwood with a capitalization rate of 8.75%. The transaction is anticipated to close in July.
Today’s price gains come after a massive 80% correction in TELL shares over the past year. Further, short interest in the stock still remains elevated at around 16% at present.
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