NextDecade Company has introduced that its subsidiary, Rio Grande LNG, LLC (RGLNG), has entered right into a credit score settlement with a bunch of lenders for US$356 million of senior loans to finance a portion of the primary three LNG trains (Section 1) at NextDecade’s 27 million tpy Rio Grande LNG export facility in Brownsville, Texas.
The senior loans have been disbursed in a single advance for the complete quantity of US$356 million on 15 September 2023, which resulted in a discount within the commitments excellent below RGLNG’s current time period mortgage services for Section 1 from US$11.1 billion to below US$10.8 billion. These senior loans will mature in July 2033, will accrue curiosity at a hard and fast charge of 6.72%, and rank pari passu to RGLNG’s current time period mortgage services, the US$500 million working capital facility, and the US$700 million of 10-year senior notes issued at ultimate funding resolution of Section 1.
This financing transaction aligns with NextDecade’s long-term steadiness sheet technique for Section 1, which incorporates extending and staggering debt maturities, diversifying sources of capital, decreasing financial institution capital over time to supply potential capability for financing future LNG expansions, and mitigating rate of interest publicity. As of the date hereof, RGLNG’s excellent fixed-rate debt and executed rate of interest swaps have decreased its publicity to motion in rates of interest for over 80% of the debt presently projected to be incurred in help of Section 1 development.
Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/22092023/nextdecade-announces-senior-loans-for-rio-grande-lng-phase-1/