Harmony and NextDecade agree to merger

NextDecade is a LNG development company focused on LNG export projects and associated pipelines in the State of Texas. NextDecade’s first proposed LNG export facility, the Rio Grande LNG project (RGLNG) located in Brownsville, Texas, along with the associated Rio Bravo pipeline originating in the Agua Dulce market area, is well positioned among the second wave of US LNG projects. NextDecade submitted its pre-filing request to the Federal Energy Regulatory Commission (FERC) in March 2015 and filed its formal application in May 2016. The company has robust commercial offtake and gas supply strategies in place, and has signed 30 million tpy of non-binding customer commitments to date, indicating strong market interest.

NextDecade’s principal equity holders include funds managed by York Capital Management, Valinor Management, and Halcyon Capital Management, who together own a majority interest in NextDecade. Harmony and NextDecade have agreed to work together exclusively toward entering into a definitive agreement providing for the merger. Completion of the merger is subject to the satisfaction of certain conditions including, but not limited to, execution of definitive agreements, approval of the transaction by Harmony’s stockholders, receipt of regulatory approval, and the retention of at least US$25 million of cash in Harmony’s trust account at closing. Assuming execution of a definitive agreement and satisfaction of closing conditions contained therein, the proposed merger is expected to close late in the second quarter of 2017.

“We are pleased to work towards bringing our stockholders this unique opportunity to participate in the US LNG export market at what we at Harmony believe to be a discount to intrinsic value,” said Harmony Chief Executive Officer, Eric Rosenfeld. “NextDecade’s commercial and regulatory progress, coupled with its location on the Texas Gulf Coast in close proximity to the Permian Basin and Eagle Ford Shale, positions the company to provide low cost LNG to customers around the world.”

“After conducting an extensive review with our Board of Directors regarding development financing considerations, we are delighted to be advancing the process of merging with Harmony,” said Kathleen Eisbrenner, NextDecade Chief Executive Officer. “Eric and his team have successfully completed four SPAC transactions, and have extensive experience in public markets. This transaction is a natural next step in NextDecade’s strategy of continuing to de-risk its projects to attract world class customers and access capital on competitive terms. We believe that the proposed Merger will enhance NextDecade’s ability to provide flexible solutions to customers and producers, and create value for our current and future stakeholders and partners.”

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14032017/harmony-and-nextdecade-agree-to-merger/