NextDecade Secures $175 Million Loan with General Atlantic
Deal News | Jan 06, 2025 | General Atlantic
NextDecade Corporation announced a $175 million senior secured loan arrangement with General Atlantic Credit's Atlantic Park Fund, with disbursements finalized on December 31. The funding is earmarked to repay an existing $50 million revolving credit facility and a $12.5 million interest term loan, also serving as working capital for corporate purposes, including developments at the Rio Grande LNG facility. NextDecade is also advancing carbon capture and storage initiatives. The loan bears a 12.0% interest rate and includes a warrant provision for shares at specific exercise prices over five years. Santander served as a financial advisor, while Latham & Watkins LLP and Akin Gump Strauss Hauer & Feld LLP provided legal counsel. NextDecade focuses on sustainable LNG and carbon solutions, while General Atlantic Credit specializes in strategic credit partnerships.
Sectors
- Energy
- Financial Services
Geography
- United States – NextDecade is headquartered in Houston, Texas, and operates within the U.S., making this the primary geographical reference.
- North America – The carbon capture and storage projects mentioned span North America, broadening the geographical impact.
Industry
- Energy – NextDecade Corporation is an energy company focusing on LNG and carbon capture solutions, indicative of the Energy sector.
- Financial Services – General Atlantic Credit provides credit investments, representing the Financial Services industry.
Financials
- $175 million – The value of the senior secured loan provided to NextDecade.
- 12.0% – Interest rate on the senior secured loan.
- $50 million – Amount used to repay existing revolving credit facility.
- $12.5 million – Amount used to repay the interest term loan.
- 7.16 million warrants – Number of warrants issued to GA Credit, exercisable for NextDecade common stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NextDecade Corporation | The Target company acquiring the loan | Company | An energy firm focused on LNG exports and carbon capture technology. |
| General Atlantic Credit | Lender | Company | The credit investment platform within General Atlantic providing the $175 million loan. |
| Santander | Financial Advisor | Company | Acted as the exclusive financial advisor to NextDecade for this transaction. |
| Latham & Watkins LLP | Legal Advisor | Company | Provided legal advice to NextDecade for the loan agreement. |
| Akin Gump Strauss Hauer & Feld LLP | Legal Advisor | Company | Provided legal advisory services to General Atlantic Credit. |
| Baker Botts L.L.P. | Legal Advisor | Company | Also acted as a legal advisor to General Atlantic Credit. |