Loan & DebtJun 18, 2026, 04:37 PM
NextDecade Subsidiary Secures $1.0B Term Loan Facility
AI Summary
NextDecade Corporation's indirect subsidiary, Rio Grande LNG Intermediate HoldCo Borrower, LLC, entered into a Credit Agreement for a $1.0 billion term loan facility. The RGLNG HoldCo Loans, maturing on June 17, 2033, will accrue interest at 7.05% per annum, payable semi-annually. The primary use of proceeds is to make an equity contribution to Rio Grande LNG, LLC to reduce its outstanding credit facility borrowings. The agreement includes customary covenants and security interests.
Key Highlights
- NextDecade's indirect subsidiary, RGLNG HoldCo Borrower, secured a $1.0 billion term loan facility.
- The RGLNG HoldCo Loans mature on June 17, 2033.
- Interest will accrue at a rate of 7.05% per annum, payable semi-annually.
- Proceeds will primarily be used for an equity contribution to RGLNG to reduce outstanding borrowings.
- Interest will be paid in-kind until after the third anniversary of the closing date, unless elected cash.
- Prepayment includes a call protection amount until June 17, 2029, then 101% until June 17, 2030, then par.
- The Credit Agreement includes covenants, such as a debt service coverage ratio of at least 1.05:1.00.
- Security interests were granted in LLC interests and substantially all of RGLNG HoldCo Borrower's property.
Price Impact
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