[8-K] NextDecade Corporation Reports Material Event
NextDecade entered binding subscription agreements to finance the fourth liquefaction train of its Rio Grande LNG facility. Two external investors—a TotalEnergies SE subsidiary and a financial investor led by GIP—agreed to provide equity commitments of up to approximately $0.3 billion and $1.5 billion, respectively, in exchange for 10% and 50% equity interests in the Train 4 joint venture company (the Financial Investor’s interest reduces to 30% upon achievement of specified returns). Separately, NextDecade’s sponsor affiliate agreed to commit approximately $1.2 billion for a 40% interest, with NextDecade’s economic interest rising to 60% if the Financial Investor achieves certain returns. The agreements are conditioned on customary closing requirements, including the execution of definitive financing documents, absence of material adverse changes and a final investment decision. The contracts also include mutual indemnities allocating risks for breaches of representations and warranties.
NextDecade ha sottoscritto accordi vincolanti per finanziare il quarto treno di liquefazione del suo impianto Rio Grande LNG. Due investitori esterni — una controllata di TotalEnergies SE e un investitore finanziario guidato da GIP — hanno concordato impegni di capitale fino a circa 0,3 miliardi di dollari e 1,5 miliardi di dollari, rispettivamente, in cambio del 10% e del 50% delle quote della società joint venture del Treno 4 (la partecipazione dell’Investitore Finanziario si riduce al 30% al raggiungimento di rendimenti prestabiliti). Separatamente, l’affiliata sponsor di NextDecade si è impegnata a versare circa 1,2 miliardi di dollari per una quota del 40%, con l’interesse economico di NextDecade che sale al 60% se l’Investitore Finanziario raggiunge determinati rendimenti. Gli accordi sono subordinati a consuete condizioni di chiusura, inclusa l’esecuzione dei documenti finanziari definitivi, l’assenza di cambiamenti sostanziali negativi e la decisione finale di investimento. I contratti prevedono inoltre indennità reciproche per l’allocazione dei rischi derivanti da violazioni di dichiarazioni e garanzie.
NextDecade firmó acuerdos de suscripción vinculantes para financiar la cuarta unidad de licuefacción de su planta Rio Grande LNG. Dos inversores externos — una filial de TotalEnergies SE y un inversor financiero liderado por GIP — acordaron compromisos de capital de hasta aproximadamente $0,3 mil millones y $1,5 mil millones, respectivamente, a cambio de participaciones del 10% y del 50% en la sociedad conjunta del Tren 4 (la participación del Inversor Financiero se reduce al 30% al alcanzar determinados rendimientos). Por separado, la afiliada patrocinadora de NextDecade acordó aportar aproximadamente $1,2 mil millones por una participación del 40%, y la participación económica de NextDecade aumentará al 60% si el Inversor Financiero logra ciertos rendimientos. Los acuerdos están condicionados a los requisitos habituales de cierre, incluida la ejecución de los documentos financieros definitivos, la ausencia de cambios adversos materiales y una decisión final de inversión. Los contratos también incluyen indemnizaciones mutuas que asignan riesgos por incumplimientos de manifestaciones y garantías.
NextDecade는 Rio Grande LNG 시설의 네 번째 액화 트레인을 금융 지원하기 위해 구속력 있는 인수계약을 체결했습니다. 외부 투자자 두 곳—TotalEnergies SE의 자회사 한 곳과 GIP가 이끄는 재무 투자자—는 각각 트레인 4 합작회사의 지분 10% 및 50%를 대가로 최대 약 3억 달러와 약 15억 달러의 자본 출자를 약속했습니다(재무 투자자의 지분은 특정 수익률 달성 시 30%로 감소). 별도로 NextDecade의 스폰서 계열사는 약 12억 달러를 출자해 40% 지분을 확보하기로 합의했으며, 재무 투자자가 특정 수익률을 달성하면 NextDecade의 경제적 지분은 60%로 상승합니다. 이들 합의는 최종 투자 결정, 확정 금융 문서의 체결, 중대한 불리한 변경의 부재 등 통상적인 종결 요건을 조건으로 합니다. 계약서에는 진술·보증 위반에 따른 위험을 배분하는 상호 면책 조항도 포함되어 있습니다.
NextDecade a conclu des accords de souscription contraignants pour financer le quatrième bloc de liquéfaction (Train 4) de son installation Rio Grande LNG. Deux investisseurs externes — une filiale de TotalEnergies SE et un investisseur financier piloté par GIP — se sont engagés à apporter des capitaux propres à hauteur d’environ 0,3 milliard de dollars et 1,5 milliard de dollars, respectivement, en contrepartie de participations de 10% et 50% dans la coentreprise du Train 4 (la participation de l’investisseur financier est réduite à 30% en cas d’atteinte de rendements spécifiés). Par ailleurs, l’affilié sponsor de NextDecade a accepté d’apporter environ 1,2 milliard de dollars pour une participation de 40%, la participation économique de NextDecade passant à 60% si l’investisseur financier atteint certains rendements. Les accords sont soumis aux conditions usuelles de clôture, notamment la signature des documents de financement définitifs, l’absence de changements défavorables importants et une décision finale d’investissement. Les contrats prévoient également des indemnisations réciproques répartissant les risques liés aux violations de déclarations et garanties.
NextDecade hat verbindliche Zeichnungsvereinbarungen zur Finanzierung des vierten Verflüssigungszuges (Train 4) seiner Rio Grande LNG-Anlage abgeschlossen. Zwei externe Investoren — eine Tochtergesellschaft von TotalEnergies SE und ein von GIP geführter Finanzinvestor — haben sich verpflichtet, jeweils bis zu ca. 0,3 Mrd. USD und 1,5 Mrd. USD an Eigenkapital bereitzustellen, im Austausch für 10% bzw. 50% Beteiligungen an der Joint‑Venture‑Gesellschaft für Train 4 (die Beteiligung des Finanzinvestors reduziert sich bei Erreichen bestimmter Renditen auf 30%). Separat hat die Sponsor‑Affiliierte von NextDecade zugesagt, ca. 1,2 Mrd. USD für einen 40%-Anteil bereitzustellen; erreicht der Finanzinvestor bestimmte Renditen, steigt NextDecades wirtschaftlicher Anteil auf 60%. Die Vereinbarungen stehen unter den üblichen Abschlussbedingungen, einschließlich Unterzeichnung endgültiger Finanzierungsdokumente, dem Ausbleiben wesentlicher nachteiliger Veränderungen und einer endgültigen Investitionsentscheidung. Die Verträge enthalten zudem gegenseitige Entschädigungsregelungen zur Zuweisung von Risiken bei Verletzung von Zusicherungen und Gewährleistungen.
- TotalEnergies subsidiary committed up to $0.3 billion to the Train 4 equity financing, providing strategic industry partnership
- Financial investor committed up to $1.5 billion, securing significant institutional capital for the project
- Sponsor affiliate committed up to $1.2 billion, ensuring NextDecade-related entities retain substantial project equity
- Clear equity allocation established: 10% (TTE), 50% (Financial Investor, reducing to 30% on returns), 40% (ND Train 4 Member) with mechanisms for NextDecade to increase economic interest to 60%
- Closing is conditioned on execution of definitive financing documents, a final investment decision and no material adverse changes, any of which could prevent closing
- Indemnity and representation obligations between Sponsor/ND Train 4 Member and JV Members create potential contingent liabilities and exposure for breaches
- Financial Investor’s economic interest reduces from 50% to 30% upon achievement of certain returns, altering long-term economic allocations under defined conditions
Insights
TL;DR: Secures major equity commitments and a strategic partner but closing hinges on financing, final investment decision and customary conditions.
The subscription agreements attach substantial equity commitments explicitly stated as up to $0.3 billion from a TotalEnergies subsidiary, $1.5 billion from a financial investor vehicle, and $1.2 billion from the sponsor affiliate, allocated as 10%, 50% (reducing to 30%) and 40% interests in Train 4 JVCo respectively. From a project-finance perspective, these commitments materially advance Train 4’s equity funding plan and bring a strategic oil & gas partner into the capital structure. However, material closing conditions—execution of financing documentation and a final investment decision—are explicit and could prevent consummation if unmet. Indemnity provisions indicate negotiated risk allocation between sponsor and investors.
TL;DR: Strategic investment from TotalEnergies and a large financial investor strengthens project backing, while contractual conditions and indemnities define near-term execution risk.
The agreements formalize option exercises by the JV Members and define clear equity stakes: the TotalEnergies affiliate at 10%, the financial investor at 50% (with a reduction mechanism to 30%) and the sponsor affiliate at 40%. Such partner composition signals strategic alignment and institutional capital support for Train 4. The presence of customary representations, warranties and reciprocal indemnities shows standard legal risk allocation. Materiality for investors lies in the explicit closing conditions—absence of material adverse changes, definitive financing documentation and the final investment decision—which retain execution risk until satisfied.
NextDecade ha sottoscritto accordi vincolanti per finanziare il quarto treno di liquefazione del suo impianto Rio Grande LNG. Due investitori esterni — una controllata di TotalEnergies SE e un investitore finanziario guidato da GIP — hanno concordato impegni di capitale fino a circa 0,3 miliardi di dollari e 1,5 miliardi di dollari, rispettivamente, in cambio del 10% e del 50% delle quote della società joint venture del Treno 4 (la partecipazione dell’Investitore Finanziario si riduce al 30% al raggiungimento di rendimenti prestabiliti). Separatamente, l’affiliata sponsor di NextDecade si è impegnata a versare circa 1,2 miliardi di dollari per una quota del 40%, con l’interesse economico di NextDecade che sale al 60% se l’Investitore Finanziario raggiunge determinati rendimenti. Gli accordi sono subordinati a consuete condizioni di chiusura, inclusa l’esecuzione dei documenti finanziari definitivi, l’assenza di cambiamenti sostanziali negativi e la decisione finale di investimento. I contratti prevedono inoltre indennità reciproche per l’allocazione dei rischi derivanti da violazioni di dichiarazioni e garanzie.
NextDecade firmó acuerdos de suscripción vinculantes para financiar la cuarta unidad de licuefacción de su planta Rio Grande LNG. Dos inversores externos — una filial de TotalEnergies SE y un inversor financiero liderado por GIP — acordaron compromisos de capital de hasta aproximadamente $0,3 mil millones y $1,5 mil millones, respectivamente, a cambio de participaciones del 10% y del 50% en la sociedad conjunta del Tren 4 (la participación del Inversor Financiero se reduce al 30% al alcanzar determinados rendimientos). Por separado, la afiliada patrocinadora de NextDecade acordó aportar aproximadamente $1,2 mil millones por una participación del 40%, y la participación económica de NextDecade aumentará al 60% si el Inversor Financiero logra ciertos rendimientos. Los acuerdos están condicionados a los requisitos habituales de cierre, incluida la ejecución de los documentos financieros definitivos, la ausencia de cambios adversos materiales y una decisión final de inversión. Los contratos también incluyen indemnizaciones mutuas que asignan riesgos por incumplimientos de manifestaciones y garantías.
NextDecade는 Rio Grande LNG 시설의 네 번째 액화 트레인을 금융 지원하기 위해 구속력 있는 인수계약을 체결했습니다. 외부 투자자 두 곳—TotalEnergies SE의 자회사 한 곳과 GIP가 이끄는 재무 투자자—는 각각 트레인 4 합작회사의 지분 10% 및 50%를 대가로 최대 약 3억 달러와 약 15억 달러의 자본 출자를 약속했습니다(재무 투자자의 지분은 특정 수익률 달성 시 30%로 감소). 별도로 NextDecade의 스폰서 계열사는 약 12억 달러를 출자해 40% 지분을 확보하기로 합의했으며, 재무 투자자가 특정 수익률을 달성하면 NextDecade의 경제적 지분은 60%로 상승합니다. 이들 합의는 최종 투자 결정, 확정 금융 문서의 체결, 중대한 불리한 변경의 부재 등 통상적인 종결 요건을 조건으로 합니다. 계약서에는 진술·보증 위반에 따른 위험을 배분하는 상호 면책 조항도 포함되어 있습니다.
NextDecade a conclu des accords de souscription contraignants pour financer le quatrième bloc de liquéfaction (Train 4) de son installation Rio Grande LNG. Deux investisseurs externes — une filiale de TotalEnergies SE et un investisseur financier piloté par GIP — se sont engagés à apporter des capitaux propres à hauteur d’environ 0,3 milliard de dollars et 1,5 milliard de dollars, respectivement, en contrepartie de participations de 10% et 50% dans la coentreprise du Train 4 (la participation de l’investisseur financier est réduite à 30% en cas d’atteinte de rendements spécifiés). Par ailleurs, l’affilié sponsor de NextDecade a accepté d’apporter environ 1,2 milliard de dollars pour une participation de 40%, la participation économique de NextDecade passant à 60% si l’investisseur financier atteint certains rendements. Les accords sont soumis aux conditions usuelles de clôture, notamment la signature des documents de financement définitifs, l’absence de changements défavorables importants et une décision finale d’investissement. Les contrats prévoient également des indemnisations réciproques répartissant les risques liés aux violations de déclarations et garanties.
NextDecade hat verbindliche Zeichnungsvereinbarungen zur Finanzierung des vierten Verflüssigungszuges (Train 4) seiner Rio Grande LNG-Anlage abgeschlossen. Zwei externe Investoren — eine Tochtergesellschaft von TotalEnergies SE und ein von GIP geführter Finanzinvestor — haben sich verpflichtet, jeweils bis zu ca. 0,3 Mrd. USD und 1,5 Mrd. USD an Eigenkapital bereitzustellen, im Austausch für 10% bzw. 50% Beteiligungen an der Joint‑Venture‑Gesellschaft für Train 4 (die Beteiligung des Finanzinvestors reduziert sich bei Erreichen bestimmter Renditen auf 30%). Separat hat die Sponsor‑Affiliierte von NextDecade zugesagt, ca. 1,2 Mrd. USD für einen 40%-Anteil bereitzustellen; erreicht der Finanzinvestor bestimmte Renditen, steigt NextDecades wirtschaftlicher Anteil auf 60%. Die Vereinbarungen stehen unter den üblichen Abschlussbedingungen, einschließlich Unterzeichnung endgültiger Finanzierungsdokumente, dem Ausbleiben wesentlicher nachteiliger Veränderungen und einer endgültigen Investitionsentscheidung. Die Verträge enthalten zudem gegenseitige Entschädigungsregelungen zur Zuweisung von Risiken bei Verletzung von Zusicherungen und Gewährleistungen.
| Form | ||||||||
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip code) | |||||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c)) | |||||
Title of each class: | Trading Symbol | Name of each exchange on which registered: | ||||||||||||
| NEXTDECADE CORPORATION | |||||||||||
| By: | /s/ Vera de Gyarfas | ||||||||||
| Name: Vera de Gyarfas | |||||||||||
| Title: General Counsel | |||||||||||
FAQ
What equity commitments did NextDecade secure for Rio Grande LNG Train 4 (NEXT)?
What equity stakes were agreed for Train 4 JVCo in the subscription agreements?
Are the subscription agreements final and closed?
Do the agreements include risk allocation or indemnities?
Does NextDecade’s economic interest change under the agreements?
