NextDecade Corp. has signed up for a $175-million senior secured mortgage from Normal Atlantic Credit score (GA Credit score) to refinance current debt and fund working capital and normal company bills.
The mortgage from the Atlantic Park Fund, much less transaction bills, has been disbursed, Rio Grande LNG proprietor NextDecade mentioned in a web-based assertion.
A part of the quantity can be used to repay excellent borrowings below a $50 million revolving credit score facility. Half can be spent on creating trains 4 and 5 of the LNG export terminal in Texas.
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Maturing six years, the mortgage has a 12 % curiosity payable quarterly. “Curiosity could also be paid in-kind for the primary two years after the cut-off date after which as much as 50 % paid in-kind thereafter”, NextDecade mentioned.
The lender obtained about 7.16 million warrants from NextDecade. “The warrants are every exercisable for one share of NextDecade frequent inventory on the possibility of GA Credit score, and are exercisable for 5 years after the cut-off date [December 31, 2024]”, NextDecade mentioned. “50 % of the warrants are exercisable at $7.15 per share, which represents the 30-day quantity weighted common buying and selling value for the 30 trading-day interval instantly previous the cut-off date, and the remaining 50 % of the warrants are exercisable at $9.30 per share”.
Santander acted as NextDecade’s monetary advisor.
Rio Grande LNG
On July 12, 2023, NextDecade introduced a closing funding choice on Rio Grande LNG’s first part, earmarking $18.4 billion then. The venture had been deliberate to have a carbon seize element. Nonetheless, NextDecade mentioned August 20, 2024, it withdrew its allow utility to construct the emission mitigation element.
At full operation Rio Grande LNG’s capability could be sufficient to warmth and funky the equal of almost 34 million households yearly, in response to a factsheet printed on-line by NextDecade.
Development of part 1, with a nameplate liquefaction capability of 17.6 million metric tons a yr, is being carried out by Bechtel Vitality Inc. Part 1 could have three trains.
Rio Grande LNG has secured a allow to export to nations with no free commerce settlement (FTA) with america by 2050, prolonged from an earlier 20-year authorization, in response to a choice by the Division of Vitality (DOE) October 21, 2020. The authorization requires Rio Grande LNG to begin export February 2027.
Rio Grande LNG additionally holds a 30-year authorization to export to nations with an FTA with the U.S., per a DOE choice issued August 17, 2016.
Nonetheless, on August 6, 2024, the Court docket of Appeals for the D.C. Circuit vacated the Federal Vitality Regulatory Fee’s allow for Rio Grande LNG on the grounds that the fee had not issued a supplemental Environmental Impression Assertion in reauthorizing the venture, in response to NextDecade.
On October 21, 2024, NextDecade filed a petition for rehearing with the courtroom.
On September 13, 2024, FERC issued notices of intent to organize supplemental Environmental Impression Statements on Rio Grande LNG, the Rio Bravo pipeline and the Texas LNG terminal initiatives.
NextDecade mentioned in its newest case replace November 7, 2024, “The courtroom’s choice won’t be efficient till the courtroom has issued its mandate, which isn’t anticipated to happen till after the appeals course of has been accomplished”.
“Right now, building continues on part 1 on the Rio Grande LNG Facility”, it mentioned.
“The corporate expects to take all out there authorized and regulatory actions, together with however not restricted to appellate actions and different methods, to make sure that building on part 1 will proceed and that needed regulatory approvals can be maintained to allow a optimistic closing funding choice on trains 4 and 5 on the Rio Grande LNG facility”.
To contact the creator, e-mail jov.onsat@rigzone.com
