NextDecade Corp. priced a $3.5 billion sale of senior secured notes to fund its Rio Grande LNG export terminal in Brownsville, Texas. The offering includes four tranches with maturities ranging from 2031 to 2041. Interest rates for the debt issuance are set between 5.25% and 6.15%.
Proceeds will repay outstanding borrowings under existing credit agreements for the project's first phase. Phase 1 involves three liquefaction trains with a total estimated investment of $18 billion. This transaction follows more than $1.85 billion in refinancing completed since July 2023.
The financing demonstrates strong investor confidence in long-term demand for U.S. liquefied natural gas. This successful raise serves as a critical step in de-risking the construction timeline for the facility. The project remains a key development for the energy export sector tracked by ETFs such as XLE, VDE, and AMLP.