NexdDecade announced in an SEC filling that Rio Grande LNG Intermediate HoldCo Borrower entered into a credit agreement with Wilmington Trust, National Association, as the administrative agent and the collateral agent, and a group of lenders.
RGLNG HoldCo Borrower is the direct parent of Rio Grande LNG Holdings, which is the direct parent of Rio Grande LNG, the entity that owns the first three trains of the Rio Grande LNG facility.
Also, RGLNG HoldCo Borrower is an indirect, wholly-owned subsidiary of Rio Grande LNG Intermediate Holdings, the joint venture entity formed to indirectly own the equity interest in RGLNG and an indirect subsidiary of NextDecade.
NextDecade said the credit agreement provides for a term loan facility in an amount of $1 billion.
RGLNG HoldCo Borrower will use the procceds primarily to make an equity contribution to RGLNG, which contribution RGLNG will use to reduce outstanding borrowings under its credit facilities, to pay certain fees and expenses associated with the credit agreement and the RGLNG HoldCo loans, and to pay general and administrative expenses of RGLNG HoldCo Borrower.
The RGLNG HoldCo loans will mature on June 17, 2033.
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.
