NextDecade Corporation has agreed to sell $50m of convertible preferred stock to HGC NEXT INV, LLC, and to funds and accounts managed by each of York Capital Management Global Advisors, LLC and its affiliates, Valinor Management, L.P., and Halcyon Capital Management LP.

HGC, a wholly owned subsidiary of a leading Korean petrochemical company, will invest $35m, and the company’s three largest stockholders, York, Valinor, and Halcyon, will invest $15m pursuant to backstop agreements dated April 11, 2018. 

As part of its investment in NextDecade, HGC will receive one seat on the company’s board of directors, and will also have the right to contribute up to $350m of project-level equity upon the final investment decision (FID) of NextDecade’s Rio Grande LNG project.

The company intends to use some of the proceeds to continue developing its Rio Grande LNG terminal facility and associated pipelines in South Texas and for general corporate purposes and working capital.

The project consists of a 27 mtpa LNG export facility located in Brownsville, Texas and an associated 4.5 Bcf/d Rio Bravo Pipeline to transport natural gas from the Agua Dulce area to Rio Grande LNG.

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10th August 2018

10th August 2018