Dec 28 (Reuters) - Liquefied natural gas firm Tellurian (TELL.A) has agreed to issue about 47.9 million shares of its common stock to High Trail, an institutional investor, to extinguish some of its previous bonds, it said on Thursday.

Shares of the company rose 9% to $1.04 in morning trading.

The company said $37.9 million out of $250 million of a 2025 bond would be extinguished and it would amend certain terms of its debt agreements, according to a regulatory filing.

Tellurian also said upon issue of the shares, the company will be deemed to have satisfied its obligations to make the cash interest payments due in respect of debt on Jan. 1.

On Wednesday, a filing showed that another investor Chatterjee Fund Management had increased its stake in Tellurian to 7.3%, from 5.2% previously.

Tellurian's Driftwood project has seen many setbacks including the cancellation of LNG supply deals.

https://www.reuters.com/markets/commodities/tellurian-issue-shares-institutional-investor-reduce-debt-2023-12-28/