NGL Energy Partners LP Announces Pricing of $2.05 Billion Offering of Senior Secured Notes
January 25 2021 - 12:23PM
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 that they have priced a private offering of
$2.05 billion in aggregate principal amount of senior secured notes
due 2026 (the “Notes”) that is exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”). NGL
expects to use the net proceeds of the offering, together with
borrowings under a new $500.0 million asset-based revolving credit
facility, to (i) repay all outstanding borrowings under and
terminate NGL’s existing revolving credit facility, (ii) repay all
outstanding borrowings under and terminate NGL’s $250.0 million
term credit agreement and (iii) to pay fees and expenses in
connection therewith. NGL expects the offering to close on February
4, 2021, subject to the satisfaction of customary closing
conditions.
The Notes are being initially sold to investors at a price of
100% of their principal amount. Interest on the notes will accrue
at a rate of 7.500% per annum and will be payable semiannually in
arrears on February 1 and August 1 of each year, beginning on
August 1, 2021. The maturity date of the notes is February 1,
2026.
The Notes have been offered and sold only to persons reasonably
believed to be qualified institutional buyers in the United States
pursuant to Rule 144A under the Securities Act, and to persons,
other than U.S. persons, outside of the United States pursuant to
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.
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/20210125005678/en/
NGL Energy Partners LP
Trey Karlovich, 918.481.1119 Executive Vice President and Chief
Financial Officer Trey.Karlovich@nglep.com or Linda Bridges,
918.481.1119 Senior Vice President – Finance and Treasurer
Linda.Bridges@nglep.com
NGL Energy Partners (NYSE:NGL)
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