NextDecade Corporation has announced that its wholly owned subsidiary, Rio Grande LNG Super Holdings, LLC, has entered into a credit agreement with General Atlantic Credit’s Atlantic Park Fund. The agreement establishes a $175 million senior secured loan (the “Senior Loan”), with proceeds disbursed at closing on December 31.
The net proceeds from the senior loan, after fees and transaction expenses, will be used to repay outstanding borrowings, including the Company’s $50 million revolving credit facility and a $12.5 million interest term loan. Additional funds will support working capital, general corporate purposes, and development expenses related to expansion trains 4 and 5 at the Rio Grande LNG Facility.
Loan Details and Terms
The senior loan matures six years from the closing date and carries an interest rate of 12.0 percent, payable quarterly. For the first two years, interest payments may be paid in-kind, with up to 50 percent payable in-kind thereafter.
As part of the agreement, NextDecade issued approximately 7.16 million warrants to GA Credit. Each warrant grants the right to purchase one share of NextDecade common stock and is exercisable for five years from the closing date. Half of the warrants are exercisable at $7.15 per share, representing the 30-day volume-weighted average trading price preceding the closing date, while the remaining half are exercisable at $9.30 per share.
Santander served as the exclusive financial advisor to NextDecade, with legal counsel provided by Latham & Watkins LLP. GA Credit was advised by Akin Gump Strauss Hauer & Feld LLP and Baker Botts L.L.P.
This financing marks a significant step forward for NextDecade as it continues the development of the Rio Grande LNG project, positioning the company to meet future energy demands and expand its operational capabilities.
For more information visit www.next-decade.com
