Energy company NextDecade Corporation’s wholly owned subsidiary, NextDecade LNG, entered into a credit agreement with MUFG Bank as lender and administrative agent that provides for a $50 million senior secured revolving credit facility and a $12.5 million interest term loan.

Borrowings under the revolving credit facility may be utilized for general corporate purposes, including development costs related to Train 4 at NextDecade’s Rio Grande LNG facility. Borrowings under the Interest term loan may be utilized to pay interest expense, fees and other expenses related to the revolving credit facility. Borrowings under the revolving credit facility and interest term loan will bear interest at SOFR or the base rate plus an applicable margin as defined in the credit agreement.

The revolving credit facility and the interest term loan mature at the earlier of two years from the closing date or 10 business days after a positive final investment decision (FID) on Train 4 at the Rio Grande LNG facility. NextDecade expects the revolving credit facility to provide meaningful liquidity and capital resources as the company progresses toward a positive FID of Train 4.

NextDecade has started the front-end engineering and design (FEED) and EPC contract processes with Bechtel Energy for Train 4 and expects to finalize the EPC contract in the first half of 2024. The company is progressing discussions with potential buyers of LNG to provide commercial support for Train 4 and is targeting a positive FID of Train 4 in the second half of 2024.