By William Gullotti
Buffalo, N.Y., Feb. 12 – NextDecade Corp., via its indirect subsidiary Rio Grande LNG, LLC, sold $190 million 6.85% senior secured notes due 2047 in a private placement on Feb. 9, according to an 8-K filing with the Securities and Exchange Commission.
The notes will be amortized over a period of about 18 years, beginning mid-2029.
There is a make-whole call until March 30, 2047, followed by a par call. Noteholders will also be able to exercise put rights at 101 upon change of control or at par upon occurrence of some other relevant events.
The issue is related to the company’s previously reported July 2023 placement agreement, which allows for up to $700 million senior secured non-recourse private placement notes to be issued in connection with Rio Grande’s phase 1 project construction.
Per the overarching agreement, the notes’ indenture requires that NextDecade maintain a debt service coverage ratio of at least 1.1 to 1.0 at the end of each fiscal quarter.
MUFG Bank, Ltd. is the intercreditor agent for the placement agreement, with Wilmington Trust, NA acting as trustee.
Proceeds were used to reduce the company’s commitments for phase 1 to approximately $10.3 billion from $10.5 billion.
Houston-based NextDecade is an energy company working on more sustainable LNG and carbon capture solutions.
| Issuer: | Rio Grande LNG, LLC
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| Amount: | $190 million
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| Issue: | Senior secured notes
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| Maturity: | June 2047
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| Intercreditor agent: | MUFG Bank, Ltd.
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| Trustee: | Wilmington Trust, NA
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| Coupon: | 6.85%
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| Call options: | Make-whole call until March 30, 2047, par call after that
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| Put options: | At 101 upon change of control; at par upon receipt of proceeds from asset sales or events of loss or liquidated damages
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| Trade date: | Feb. 9
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| Distribution: | Private placement
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