NextDecade clinches US$356M to finance portion of Rio Grande LNG project

Phase 1 includes the first three LNG trains at NextDecade’s 27 million tonnes per annum (mtpa) export facility in Brownsville, Texas.

The senior loans were disbursed in one advance for the full amount of US$356M on 15 September, 2023, which resulted in a reduction in the commitments outstanding under RGLNG’s existing term loan facilities for Phase 1 from US$11.1Bn to under US$10.8Bn.
These senior loans will mature in July 2033, will accrue interest at a fixed rate of 6.72%, and rank pari passu to Rio Grande LNG’s existing term loan facilities, the US$500M working capital facility, and the US$700M of 10-year senior notes issued at FID of Phase 1.
This financing transaction is part of NextDecade’s long-term balance sheet strategy for Phase 1, which includes extending and staggering debt maturities, diversifying sources of capital, reducing bank capital over time to provide potential capacity for financing future LNG expansions, and mitigating interest rate exposure.
As of the date hereof, Rio Grande’s outstanding fixed-rate debt and executed interest rate swaps have reduced its exposure to movement in interest rates for over 80% of the debt currently projected to be incurred in support of Phase 1 construction.
As of July, NextDecade reported that it had sold 16.2M tonnes per annum (mta) of LNG from Phase 1 of the project. LNG carrier owner Dynagas has locked in time charters for its 155,000 cbm Arctic Aurora and 150,000 cbm Clean Energy to the Rio Grande LNG project.
The export facility is targeting commercial start-up in 2027.