NextDecade closes financial transactions to fund Train 4 at Rio Grande LNG

NextDecade (NEXT) announced that it has made a positive final investment decision, or FID, on Train 4 at Rio Grande LNG, closed financial transactions to fully fund Train 4 and related infrastructure, and issued full notice to proceed to Bechtel Energy, for Train 4. Additionally, the Company continues to progress Train 5 at Rio Grande LNG toward an expected FID in the Q4. Train 4 has expected LNG production capacity of approximately 6 MTPA, bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 24 MTPA. Train 4 is commercially supported by 4.6 MTPA of 20-year LNG Sale and Purchase Agreements (SPAs) with ADNOC, TotalEnergies, and Aramco. The guaranteed substantial completion date for Train 4, as well as the date of first commercial delivery under the Train 4 LNG SPAs, is anticipated in the second half of 2030. Project costs for Train 4 and related infrastructure are expected to total approximately $6.7B, including EPC costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs. To fully fund the expected costs for Train 4 and related infrastructure, the Company successfully closed on approximately $6.7B in committed financing including: $3.85B term loan facility at Rio Grande LNG Train 4; $1.13B in equity commitments from NextDecade; and $1.70B in equity commitments from partners Global Infrastructure Partners, a part of BlackRock; GIC; Mubadala Investment Company; and TotalEnergies. NextDecade received $98M at financial close from Rio Grande LNG Train 4 for development costs and management services, and an additional $50M will be received on September 9, 2026. NextDecade has an initial economic interest of 40% in Train 4, which will increase to 60% after the Financial Investors achieve certain returns on their investments in Train 4. NextDecade entered into a total of $1.33B in term loans to finance its portion of Train 4 equity funding commitments without any impact to NextDecade common shares outstanding. The FinCo Loan is a $734M delayed draw bank facility that bears interest at SOFR plus 350 basis points. The Company has mitigated interest risk exposure related to the FinCo Loan through hedging at a SOFR rate of 4.12%. Commitments under the FinCo Loan are cancellable and can be prepaid without penalty. The SuperFinCo Loan is a $600M term loan, with net proceeds disbursed at financial close. The SuperFinCo loan bears interest at 13%, with interest payable in kind until one year after Train 4 completion, and is callable after five years at par. Train 5 commercialization is complete, and Train 5 is commercially supported by a total of 4.5 MTPA of 20-year LNG SPAs with JERA, EQT Corporation, and ConocoPhillips.