US LNG export project developer NextDecade has agreed to sell $50 million of stock in a private offering to HGC Next INV.
The buyers also include funds and accounts managed by each of York Capital Management Global Advisors, and its affiliates Valinor Management, and Halcyon Capital Management.
HGC, a unit of a Korean petrochemical company, will invest $35 million, and the company’s three largest stockholders, York, Valinor, and Halcyon, will invest $15 million 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 $350 million of project-level equity upon the final investment decision (FID) of NextDecade’s Rio Grande LNG project.
NextDecade intends to use the proceeds of the private offering to continue developing its Rio Grande LNG terminal facility and associated pipelines in South Texas and for general corporate purposes and working capital.
The company added that during the course of the offering, it received expressions of interest for the stock in excess of the $50 million, however, should it decide to pursue the sale of stock beyond $50 million it would seek stockholder approval for the issuance of additional convertible preferred stock.