NextDecade Announces Issuance of Preferred Equity
March 18 2021 - 7:00AM
Business Wire
NextDecade Corporation (NextDecade or the Company) (NASDAQ:
NEXT) announced today that it has agreed to sell $24.5 million of
Series C Convertible Preferred Stock (Series C Preferred Stock).
The Series C Preferred Stock is being issued in a private placement
to funds managed by York Capital Management, Avenue Capital Group,
and Bardin Hill Investment Partners. NextDecade intends to use
proceeds to finalize commercial agreements needed to achieve a
final investment decision on Rio Grande LNG in 2021, to advance the
work of its NEXT Carbon Solutions business, including developing
one of the largest carbon capture and storage (CCS) projects in
North America to reduce greenhouse gas emissions at Rio Grande LNG,
and for general corporate purposes.
“NextDecade is pleased to solidify its balance sheet with
additional development capital from existing and new institutional
investors as we progress to an expected FID at Rio Grande LNG in
2021,” Matt Schatzman, NextDecade’s Chairman and Chief Executive
Officer. “This preferred equity capital raise coincides with the
formation of NEXT Carbon Solutions and affirms NextDecade’s
leadership in efforts to reduce global greenhouse gas emissions.
This capital will facilitate the advancement and realization of
transformative and impactful contributions that NEXT Carbon
Solutions expects to make to the global energy industry and the
quest toward a net-zero future.”
The offer and sale of the Series C Preferred Stock has not been,
and will not be, registered under the Securities Act of 1933
(Securities Act), or any other securities laws, and the Series C
Preferred Stock cannot be offered or sold except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and any other
applicable securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities, in any state or jurisdiction
in which such offer, solicitation or sale of these securities would
be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About NextDecade Corporation
NextDecade Corporation (NextDecade) is committed to providing
the world access to cleaner energy. NextDecade, through its wholly
owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions, is
developing a 27 mtpa LNG export facility in South Texas along with
one of the largest carbon capture and storage projects in North
America. The Rio Grande LNG facility is expected to be the largest
and greenest U.S. LNG export solution linking Permian Basin and
Eagle Ford Shale natural gas to the global LNG market. NextDecade’s
common stock is listed on the Nasdaq Stock Market under the symbol
“NEXT.” NextDecade is headquartered in Houston, Texas. For more
information, visit www.next-decade.com.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws including, in
particular, statements about the Company’s private placement of
Series C Preferred Stock and the use of proceeds thereof. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design” and
other words and terms of similar expressions are intended to
identify forward-looking statements, and these statements may
relate to the business of NextDecade and its subsidiaries. These
statements have been based on NextDecade’s current assumptions,
expectations, and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include
uncertainties about progress in the development of NextDecade’s LNG
liquefaction and export projects and the timing of that progress;
NextDecade’s final investment decision (“FID”) in the construction
and operation of a LNG terminal at the Port of Brownsville in
southern Texas (the “Terminal”) and the timing of that decision;
the successful completion of the Terminal by third-party
contractors and an approximately 137-mile pipeline to supply gas to
the Terminal being developed by a third-party; NextDecade’s ability
to secure additional debt and equity financing in the future to
complete the Terminal; the accuracy of estimated costs for the
Terminal; statements that the Terminal, when completed, will have
certain characteristics, including amounts of liquefaction
capacities; the development risks, operational hazards, regulatory
approvals applicable to the Terminal’s and the third-party
pipeline's construction and operations activities; NextDecade’s
anticipated competitive advantage and technological innovation
which may render its anticipated competitive advantage obsolete;
the global demand for and price of natural gas (versus the price of
imported LNG); the availability of LNG vessels worldwide; changes
in legislation and regulations relating to the LNG industry,
including environmental laws and regulations that impose
significant compliance costs and liabilities; NextDecade’s ability
to develop and implement carbon capture and storage or similar
technology to reduce anticipated carbon emissions from the
Terminal; the 2019 novel coronavirus pandemic and its impact on
NextDecade’s business and operating results, including any
disruptions in NextDecade’s operations or development of the
Terminal and the health and safety of NextDecade’s employees, and
on NextDecade’s customers, the global economy and the demand for
LNG; risks related to doing business in and having counterparties
in foreign countries; NextDecade’s ability to maintain the listing
of its securities on a securities exchange or quotation medium;
changes adversely affecting the business in which NextDecade is
engaged; management of growth; general economic conditions;
NextDecade’s ability to generate cash; compliance with
environmental laws and regulations; the result of future financing
efforts and applications for customary tax incentives; and other
matters discussed in the “Risk Factors” section of NextDecade’s
Annual Report on Form 10-K for the year ended December 31, 2019 and
other subsequent reports filed with the Securities and Exchange
Commission, all of which are incorporated herein by reference.
Additionally, any development of the Terminal remains contingent
upon completing required commercial agreements, acquiring all
necessary permits and approval, securing all financing commitments
and potential tax incentives, achieving other customary conditions
and making a final investment decision to proceed. The
forward-looking statements in this press release speak as of the
date of this release. Although NextDecade believes that the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that the expectations will
prove to be correct. NextDecade may from time to time voluntarily
update its prior forward-looking statements, however, it disclaims
any commitment to do so except as required by securities laws.
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Patrick Hughes phughes@next-decade.com +1 (832) 209-8131
NextDecade (NASDAQ:NEXT)
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