NextDecade Seeks to Raise $3.5B in Debt Instrument Sale for Rio Grande LNG
NextDecade Corp has priced a series of senior secured notes with a total principal amount of $3.5 billion to fund the under-construction Rio Grande LNG project in Brownsville, Texas.
The first tranche, due 2031 with a 5.25 percent interest rate, totals $1 billion. The $500-million second tranche matures 2034 with a 5.5 percent interest rate. A further $1.25-billion notes mature 2036 with a 5.75 percent interest rate. Rounding up the offering are $750-million notes due 2041 with a 6.15 percent interest rate.
Rio Grande LNG LLC (RGLNG) "intends to use the net proceeds from the offering of Senior Secured Notes to (i) repay a portion of the outstanding borrowings under its existing credit agreements and (ii) to pay related fees and expenses thereto", Houston, Texas-based NextDecade said in a press release.
"The Senior Secured Notes will rank pari passu to RGLNG’s existing term loan facilities, working capital facility, senior secured notes, and senior secured loans".
For phase 1, which consists of liquefaction trains 1-3, Rio Grande LNG expects to invest $18 billion.
"Phase 1 LLC has refinanced a total of over $1.85 billion of its original $11.1 billion term loan facilities since July 2023 through the issuance of senior secured notes and loans", NextDecade said in its quarterly filing for the first three months of 2026.
"In April 2025, Phase 1 LLC elected to terminate $250 million of commitments under its working capital facility due to a decrease in expected requirements for credit support during construction, which reduced the outstanding commitments under the working capital facility to $250 million".
Last year NextDecade greenlighted trains 4 and 5. Each train would add about 6 million metric tons per annum (MMtpa) of capacity; Rio Grande LNG now has around 30 MMtpa of capacity under construction. Trains 4 and 5 are estimated to each require $6.7 billion.
"[W]e are developing and advancing the permitting process for Trains 6 through 8", NextDecade said in its Q1 2026 filing. "There is sufficient space at the Rio Grande LNG Facility site for up to 10 liquefaction trains".
Rio Grande LNG initially obtained federal authorization to export up to 1.32 trillion cubic feet a year of natural gas equivalent, or 27 MMtpa of LNG, to countries with or without a free trade agreement (FTA) with the U.S. until 2050 on a non-additive basis.
On June 12, 2026 the Department of Energy granted an increase from 27 MMtpa to about 30 MMtpa for the FTA portion of the authorization. The same increase for the non-FTA portion remains pending.
Meanwhile, according to NextDecade's Q1 2026 report, a court challenge remained pending at a DC court on the Federal Energy Regulatory Commission's reaffirmation of approval for the construction of the first 5 trains.
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