NGL Energy Partners LP Announces Closing of $400 Million Private Placement of Equity Securities
July 02 2019 - 4:49PM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (the “Partnership” or “NGL”)
today announced that on July 2, 2019, it completed a private
placement to institutional investors of $400 million of its Class D
Preferred Units and warrants to purchase common units representing
equity interests in the Partnership.
The Class D Preferred Units bear an initial preferred
distribution rate of 9.00%, are redeemable at any time at the
option of the Partnership, and are redeemable at the option of the
holders after eight and one-half years or in connection with a
change of control. The warrants have a ten-year expiration date and
will be exercisable upon and after the first anniversary of their
issuance, for 7,000,000 common units at $14.54 per unit, and
10,000,000 common units at $17.45 per unit.
NGL used the net proceeds from the issuance of the Class D
Preferred Units and the warrants to pay for a portion of the
purchase price of the previously announced acquisition of assets
from Mesquite Disposals Unlimited, LLC and Mesquite SWD Inc.
In addition, on July 2, 2019, NGL issued 4,185,642 additional
units out of its existing preferred equity interests designated
Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual
Preferred Units (which have a $25.00 per unit liquidation
preference), as payment of a portion of the purchase price for the
Mesquite acquisition.
The securities described herein have not been registered under
the Securities Act of 1933, or the securities laws of any state or
other jurisdiction, and may not be offered or sold in the United
States without registration or an applicable exemption from the
Securities Act of 1933 and applicable state securities or blue-sky
laws. This press release does not constitute an offer to sell or
the solicitation of an offer to buy the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
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version on businesswire.com: https://www.businesswire.com/news/home/20190702005674/en/
NGL Energy Partners LP Investor Relations: 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
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