NGL Energy Partners LP Provides Summary of Recent Financing Transactions
April 10 2019 - 6:30AM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (the “Partnership”) today
announced the recent completion of the following financing
transactions:
- Issuance and sale of $45.0 million of
9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units (the “Class C Preferred Units”) on April
2, 2019;
- Redemption of 7,468,978 of the
Partnership’s issued and outstanding 10.75% Class A Convertible
Preferred Units (the “Class A Preferred Units”) on April 5, 2019,
for approximately $102.5 million (including accrued and unpaid
distributions) using net proceeds from the Class C Preferred Units
as well as borrowings under its revolving credit facility.
Immediately following the redemption, the Partnership had
12,473,191 Class A Preferred Units issued and outstanding,
representing a face value of approximately $150.1 million; and
- Issuance and sale of 7.500% Senior
Notes due 2026 in the aggregate principal amount of $450.0 million
on April 9, 2019, the net proceeds of which the Partnership will
use to repay indebtedness under its revolving credit facility,
which it may re-borrow from time to time for general partnership
purposes.
“These financing transactions have addressed our near term debt
maturities and increased our liquidity, with a focus on continuing
to maintain our strong credit metrics and on improving our cost of
capital,” stated Trey Karlovich, the Partnership’s Chief Financial
Officer. “We have made tremendous progress on improving our
leverage, and we will continue to focus on our balance sheet as we
grow the business with the intention of keeping our compliance
leverage below our stated 3.25x target.”
The following table summarizes the principal amounts of the
Partnership’s outstanding debt under its revolving credit facility
and its senior notes, as well as the face value of the
Partnership’s preferred equity balances, in each case, as of
December 31, 2018, March 31, 2019, and March 31, 2019, pro forma
for the transactions discussed above (in millions):
As Adjusted December 31, 2018 March 31, 2019
March 31, 2019
Debt: Expansion Capital
Borrowings $ - $ 275.0 $ - Working Capital Borrowings 889.0 896.0
788.7 5.125% Senior Notes Due 2019 339.9 - - 7.500% Senior Notes
Due 2023 607.3 607.3 607.3 6.125% Senior Notes Due 2025 389.1 389.1
389.1 7.500% Senior Notes Due 2026 - - 450.0
Preferred Equity: 10.75% Class A Convertible
Preferred Units $ 240.0 $ 240.0 $ 150.1 9.00% Class B Perpetual
Preferred Units 210.0 210.0 210.0 9.625% Class C Perpetual
Preferred Units - - 45.0
As of March 31, 2019, and pro forma for the transactions
discussed above, the Partnership would have had approximately $2.2
billion in total long-term debt, including $788.7 million
outstanding on its revolving credit facility, and would have had
approximately $838 million of remaining borrowing capacity under
its revolving credit facility (net of approximately $138 million of
outstanding letters of credit).
Forward-Looking Statements
Certain matters contained in this Press Release include
"forward-looking statements." All statements, other than statements
of historical fact, included in this Press Release may constitute
forward-looking statements. Although the Partnership believes that
the expectations reflected in these forward-looking statements are
reasonable, the Partnership cannot provide any assurance that these
expectations will prove to be correct. These forward-looking
statements are subject to certain known and unknown risks and
uncertainties, as well as assumptions that could cause actual
results to differ materially from those reflected in these
forward-looking statements. Factors that might cause actual results
to differ include, but are not limited to, the risk factors
discussed from time to time in each of the Partnership’s documents
and reports filed with the United States Securities and Exchange
Commission.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained in this Press Release, which
reflect management's opinions only as of the date hereof. Except as
required by law, the Partnership undertakes no obligation to revise
or publicly release the results of any revision to any
forward-looking statements.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited
partnership. The Partnership owns and operates a vertically
integrated energy business with four primary businesses: water
solutions, crude oil logistics, NGL logistics and refined
products/renewables. For further information, visit the
Partnership's website at www.nglenergypartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190410005327/en/
Trey Karlovich 918-481-1119Executive Vice President and Chief
Financial Officertrey.karlovich@nglep.comorLinda Bridges
918-481-1119Senior Vice President – Finance and
Treasurerlinda.bridges@nglep.com
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