NextDecade sells $50M of convertible preferred stock
NextDecade Corporation announced that it has agreed to sell $50M of convertible preferred stock to HGC NEXT INV, LLC, and to funds and accounts managed by each of York Capital Management Global Advisors, LLC and its affiliates, Valinor Management, L.P. and Halcyon Capital Management LP. HGC, a wholly owned subsidiary of a leading Korean petrochemical company, will invest $35M, and the company's three largest stockholders, York, Valinor, and Halcyon, will invest $15M pursuant to backstop agreements dated April 11, 2018. These investments will be made in Series A Convertible Preferred Stock pursuant to the company's private offering approved at a Special Meeting of Stockholders on June 15, 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 $350M of project-level equity upon the final investment decision of NextDecade's Rio Grande LNG project. The company intends to use the proceeds of the Series A 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.