NextDecade’s Rio Grande LNG in $3.5 billion senior notes offering

According to a NextDecade statement, RGLNG will issue $1 billion senior secured notes due 2031, $500 million senior secured notes due 2034, $1.25 billion senior secured notes due 2036, and $750 million senior secured notes due 2041.

The 2031 notes were priced at 99.918 percent of par, bear an interest rate of 5.250 percent and will mature on June 30, 2031, while the 2034 notes were priced at 99.877 percent of par, bear an interest rate of 5.500 percent and will mature on January 30, 2034.

Moreover, the 2036 notes were priced at par, bear an interest rate of 5.750 percent and will mature on June 30, 2036, while the 2041 notes were priced at par, bear an interest rate of 6.150 percent, and will mature on June 30, 2041.

NextDecade said the offering is expected to close on July 2, 2026, subject to customary closing conditions.

RGLNG intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its existing credit agreements and to pay related fees and expenses thereto.

It is worth mentioning that a unit of NextDecade recently entered a $1 billion term loan to support the first three trains of the Rio Grande LNG project in Texas.

Five trains

In July 2023, NextDecade took the final investment decision on the first three Rio Grande LNG trains.

In September and October last year, NextDecade made the final investment decisions on the fourth and fifth trains at its Rio Grande LNG facility.

This brings the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.

NextDecade expects the facility to receive first gas by the end of this year and start shipping LNG produced at the first train in the first half of 2027.

In addition, NextDecade is seeking approval from FERC to build and operate the sixth Rio Grande liquefaction train and an additional marine berth.