Form 4: Bardin Hill Investment Partners Exercises NextDecade Warrants, Resulting in Share Adjustments

Bardin Hill Investment Partners exercised Series C Warrants to purchase NextDecade Corp. shares, leading to adjustments in their holdings across multiple funds.

Summary

• On March 22, 2024, Bardin Hill Investment Partners exercised Series C Warrants to purchase 91,227 shares of NextDecade Corporation's common stock.
• The warrants were exercised on a cashless basis for $0.01 per share, as per the Series C Warrant Agreement from March 22, 2021.
• NextDecade withheld 165 shares to cover the aggregate exercise price.
• The remaining 91,062 shares were distributed as follows: 82,597 shares to HCN LP and 8,465 shares to Bardin Hill Event-Driven Master Fund LP.
• Following these transactions, the shareholdings are: 1,538,882 by HDML, 6,199,922 by HCN, and 845,057 by Master Fund.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The exercise of warrants indicates continued confidence in NextDecade, but it's a pre-planned transaction rather than a new development.

Positives

• The exercise of warrants demonstrates Bardin Hill's continued investment in NextDecade.
• The cashless exercise minimizes immediate cash outlay for Bardin Hill.

Industry Context

This transaction reflects ongoing investment activity in the energy sector, particularly in companies like NextDecade focused on LNG projects. Warrant exercises are a common mechanism for investors to increase their stake in a company, especially when they foresee future growth.

Comparison to Industry Standards

• Warrant exercises are a common practice in the energy sector, similar to those seen with Tellurian Inc. where early investors have converted warrants into common stock.
• The cashless exercise is a standard method used by institutional investors to manage their cash flow, comparable to strategies employed by firms like BlackRock in other energy investments.
• The resulting share distribution among different funds is typical for large investment firms like Bardin Hill, mirroring the fund allocation strategies of firms such as Apollo Global Management.

Stakeholder Impact

• The warrant exercise increases the ownership stake of Bardin Hill and its associated funds in NextDecade.
• This transaction could have a minor positive impact on shareholder confidence.

Key Dates