NextDecade, Harmony ink merger deal

Rio Grande LNG facility rendering (Image courtesy of NextDecade)

Harmony Merger Corporation and the US LNG export player NextDecade have signed a definitive merger agreement, which would result in NextDecade becoming a publicly listed company.

The deal follows a letter of intent signed by the two companies in March.

The all-stock transaction is valued at $1 billion with up to an additional $200 million of contingent stock consideration to be paid to NextDecade’s members upon the achievement of certain milestones, a joint statement reads.

“Assuming no redemptions by Harmony stockholders, current Harmony stockholders will own approximately 13.0% of the combined company immediately following consummation of the business combination,” the duo said.

According to the statement, Harmony’s board of directors has approved the terms of the merger deal and has recommended that its stockholders approve the transaction.  NextDecade’s Board of Managers and NextDecade’s members have approved the terms of the transaction. Completion of the Business Combination is subject to

On the other side, NextDecade’s board of managers and the company’s members have also approved the terms of the transaction.

The deal is expected to close late in the second quarter of this year.

“We believe a transaction with Harmony will strengthen our ability to bring competitively priced, U.S.-produced LNG to the world market in the early part of the next decade,” said Kathleen Eisbrenner, NextDecade Chief Executive.

NextDecade proposed to develop the Rio Grande LNG export project in Brownsville, Texas, along with the associated Rio Bravo pipeline originating in the Agua Dulce market area.

The company submitted its pre-filing request to the Federal Energy Regulatory Commission (FERC) in March 2015 and filed its formal application in May 2016. It has signed 30 mtpa of non-binding customer commitments to date.

NextDecade’s principal equity holders include funds managed by York Capital Management, Valinor Management, and Halcyon Capital Management, who together own a majority interest in the company.

 

Share this article

Follow LNG World News

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

The 6th CWC China LNG & Gas International Exhibition & Summit

Following on from LNG 2019 and five successful editions in Beijing, the established China LNG & Gas International Exhibition & Summit…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

American LNG Forum 2020

The American LNG Forum is your gateway to learning about the US LNG export industry,

read more >

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >