NGL Energy Partners LP Announces Pricing of $2.2 Billion Offering of Senior Secured Notes
January 25 2024 - 4:58PM
Business Wire
NGL Energy Partners LP (NYSE: NGL) (“NGL”), through its wholly
owned subsidiaries NGL Energy Operating LLC and NGL Energy Finance
Corp., today announced the upsizing of their senior secured notes
offering from $2.1 billion to $2.2 billion and have priced $900
million in aggregate principal amount of 8.125% senior secured
notes due 2029 (the “2029 Notes”) and $1.3 billion in aggregate
principal amount of 8.375% senior secured notes due 2032 (the “2032
Notes” and, together with the 2029 Notes, the “Notes”). NGL expects
to use the net proceeds of the offering, together with the
borrowings under a new seven-year $700.0 million senior secured
term loan facility expected to be entered into concurrently with
the offering, (i) to fund the redemption, and related discharge of
the indentures governing, NGL’s existing 6.125% senior notes due
2025, 7.5% senior notes due 2026, and 7.500% senior secured notes
due 2026, including any applicable premiums and accrued and unpaid
interest, (ii) to pay fees and expenses in connection therewith,
(iii) to repay borrowings under NGL’s senior secured asset-backed
lending facility and (iv) to the extent of any remaining net
proceeds, for general corporate purposes.
The Notes are being initially sold to investors at a price of
100% of their principal amount and interest on the Notes will be
payable quarterly on February 15, May 15, August 15 and November 15
of each year, beginning on May 15, 2024. Interest on the 2029 Notes
will accrue at a rate of 8.125% per annum. The maturity date of the
2029 Notes is February 15, 2029. Interest on the 2032 Notes will
accrue at a rate of 8.375% per annum. The maturity date of the 2032
Notes is February 15, 2032.
The Notes are being offered and sold in a transaction exempt
from registration under the Securities Act of 1933 (the “Securities
Act”) only to persons reasonably believed to be qualified
institutional buyers in accordance with Rule 144A under the
Securities Act, and outside the United States to persons other than
U.S. persons, in reliance on Regulation S under the Securities
Act.
The offer and sale of the Notes have not been registered under
the Securities Act or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws. This press release shall
not constitute an offer to sell or a solicitation of an offer to
purchase the Notes or any other securities, and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
Forward-Looking Statements
This press release includes “forward-looking statements.” All
statements other than statements of historical facts included or
incorporated herein may constitute forward-looking statements.
Specifically, forward-looking statements may include, among others,
statements concerning the offering, the new term loan facility and
the expected use of proceeds thereof. Actual results could vary
significantly from those expressed or implied in such statements
and are subject to a number of risks and uncertainties. While NGL
believes such forward-looking statements are reasonable, NGL cannot
assure they will prove to be correct. The forward-looking
statements involve risks and uncertainties that affect operations,
financial performance, and other factors as discussed in filings
with the Securities and Exchange Commission. Other factors that
could impact any forward-looking statements are those risks
described in NGL’s annual report on Form 10-K, quarterly reports on
Form 10-Q, and other public filings. You are urged to carefully
review and consider the cautionary statements and other disclosures
made in those filings, specifically those under the heading “Risk
Factors.” NGL undertakes no obligation to publicly update or revise
any forward-looking statements except as required by law.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership, is a
diversified midstream energy company that transports, stores,
markets and provides other logistics services for crude oil,
natural gas liquids and other products and transports, treats and
disposes of produced water generated as part of the oil and natural
gas production process.
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version on businesswire.com: https://www.businesswire.com/news/home/20240125580152/en/
NGL Energy Partners LP David Sullivan, 918-495-4631 Vice
President - Finance David.Sullivan@nglep.com
NGL Energy Partners (NYSE:NGL)
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