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Printed by Jessica Casey,
Deputy Editor
LNG Business,
NextDecade Company has introduced that its subsidiary, Rio Grande LNG, LLC (RGLNG), has entered right into a credit score settlement with a gaggle 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 total quantity of US$356 million on 15 September 2023, which resulted in a discount within the commitments excellent below RGLNG’s present time period mortgage amenities 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 price of 6.72%, and rank pari passu to RGLNG’s present time period mortgage amenities, the US$500 million working capital facility, and the US$700 million of 10-year senior notes issued at last funding choice 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, lowering 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 lowered its publicity to motion in rates of interest for over 80% of the debt at present projected to be incurred in assist 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/
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