The senior loans were disbursed in one advance for the full amount of US$356 million on 15 September 2023, which resulted in a reduction in the commitments outstanding under RGLNG’s existing term loan facilities for Phase 1 from US$11.1 billion to under US$10.8 billion. These senior loans will mature in July 2033, will accrue interest at a fixed rate of 6.72%, and rank pari passu to RGLNG’s existing term loan facilities, the US$500 million working capital facility, and the US$700 million of 10-year senior notes issued at final investment decision (FID) of Phase 1.
This financing transaction aligns with NextDecade’s long-term balance sheet strategy for Phase 1, which includes extending and staggering debt maturities, diversifying sources of capital, reducing bank capital over time to provide potential capacity for financing future LNG expansions, and mitigating interest rate exposure. As of the date hereof, RGLNG’s outstanding fixed-rate debt and executed interest rate swaps have reduced its exposure to movement in interest rates for over 80% of the debt currently projected to be incurred in support of Phase 1 construction.
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/21092023/nextdecade-announces-us356-million-of-senior-loans-for-rio-grande-lng-phase-1/
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