NGL Closes $2.9 Billion Debt Refinancing Transactions and Amends and Extends Asset-Based Revolving Credit Facility
February 02 2024 - 12:55PM
Business Wire
NGL Energy Partners LP (NYSE: NGL) (“NGL”) through its wholly
owned subsidiaries NGL Energy Operating LLC and NGL Energy Finance
Corp., closed $2.9 billion of refinancing transactions, consisting
of their previously announced $2.2 billion senior secured notes
offering of $900 million in aggregate principal amount of 8.125%
senior secured notes due 2029 and $1.3 billion in aggregate
principal amount of 8.375% senior secured notes due 2032, and a
seven-year $700.0 million senior secured term loan facility. The
net proceeds from these transactions are being used (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 all borrowings
under NGL’s senior secured asset-based revolving credit facility
and (iv) to the extent of any remaining net proceeds, for general
corporate purposes.
In addition, in connection with the closing of the refinancing
transactions, NGL’s senior secured asset-based revolving credit
facility was amended to extend the maturity to February 2029 and to
make certain other changes to the terms thereof. No changes were
made to the aggregate amount of commitments under the facility.
The notes were 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,
and the notes 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 expected uses of proceeds of the
refinancing transactions. 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. For further information, visit NGL’s
website at www.nglenergypartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240202484086/en/
NGL Energy Partners LP David Sullivan, 918-495-4631 Vice
President – Finance David.Sullivan@nglep.com
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