NextDecade’s Rio Grande LNG to Receive $356M in Senior Loans

The NextDecade Corporation’s subsidiary, Rio Grande LNG (RGLNG), is subject to a credit agreement with lenders for $356 million in senior loans to fund a portion of Phase 1 at NextDecade’s 27 million tonnes per annum (MTPA) Rio Grande LNG export facility.

A one-time advance for $356 million was granted by the lender group on Sept. 15, 2023, resulting in the reduction of commitments outstanding under RGLNG’s current term loan facilities for Phase 1 from $11.1 billion to below $10.8 billion. The loans will mature in July 2033 and will gather interest at a fixed rate of 6.72%. These loans will be ranked on equal footing to RGLNG’s existing loan facilities—a $500 million working capital facility and $700 million of 10-year senior notes granted during the final investment decision for Phase 1.

NextDecade’s secured funding adheres to the strategy outlined for Phase 1 of RGLNG: extending and staggering debt maturities, diversifying sources of capital, reducing bank capital over time to provide capacity for future LNG expansions, and minimizing exposure to interest rates. Currently, RGLNG’s fixed-rate debt and executed interest rate swaps have limited the exposure to volatile interest rates for more than 80% of the debt expected to be incurred during Phase 1 construction.