Rio Grande LNG Pursues New Debt Offering to Refinance Existing Loans

Rio Grande LNG plans a new senior secured notes offering to refinance existing debt and support financing activities at its South Texas LNG export project.

(P&GJ) — Rio Grande LNG, a subsidiary of NextDecade Corp., plans to issue senior secured notes in a private offering as part of an effort to refinance a portion of its existing project debt.

The proposed offering, subject to market conditions, would be made to qualified institutional buyers and certain non-U.S. investors. Rio Grande LNG said proceeds would be used primarily to repay a portion of outstanding borrowings under existing credit facilities, cover related fees and expenses, and fund certain interest-rate hedge termination payments.

The senior secured notes would rank equally with the company's existing term loan facilities, working capital facility, senior secured notes and senior secured loans.

Rio Grande LNG is developing a large-scale LNG export facility at the Port of Brownsville in South Texas. The company did not disclose the size, pricing or timing of the proposed offering.

NextDecade said the transaction remains subject to market conditions and customary financing requirements.