NGL Energy Partners LP Announces $250 Million Term Loan Facility with Certain Funds & Accounts Managed by Affiliates of Apoll...
June 04 2020 - 6:30AM
Business Wire
NGL Energy Partners LP (NYSE: NGL) (“the Partnership” or “NGL”)
announced that it has entered into a new $250 million term loan
facility with certain funds and accounts (the “Apollo Funds”)
managed by affiliates of Apollo Global Management, Inc. (NYSE: APO)
(together with its consolidated subsidiaries, “Apollo”) to
refinance its existing $250 million bridge term loan facility that
was established in July 2019 with TD Securities (USA) LLC as lead
arranger and bookrunner and The Toronto-Dominion Bank, New York
Branch as initial lender to finance a portion of the acquisition of
Mesquite Disposals Unlimited LLC (“Mesquite”).
“We are pleased to work with Apollo, a leading investment
management firm, and their well-respected team, on this transaction
to term out the bridge facility we utilized last summer to fund the
Mesquite transaction,” stated Mike Krimbill, NGL’s CEO. “The Apollo
team has worked closely with our management team over the past
several weeks conducting due diligence and preparing documentation
to complete this financing. We believe an investment by Apollo of
this magnitude is a strong endorsement of our business model,
strategy and future growth opportunities, particularly in our Water
Solutions business. We also appreciate the support of TD in
providing the initial facility and for being an important
relationship bank in our revolving credit facility.”
“We are pleased to provide this new facility to NGL, which has
built a diversified midstream company with a premier U.S. water
infrastructure franchise,” said Wilson Handler and Andy Safran, of
Apollo’s Natural Resources Private Equity business. “With its
high-quality assets, customer base and management team led by CEO
Mike Krimbill, we believe NGL is well positioned for future
success.”
Apollo Credit Managing Director Dan Vogel added, “This financing
solution reflects our expanding large-scale direct lending
capabilities and completing it in partnership with our Natural
Resources Private Equity team underscores the benefits of Apollo’s
integrated platform.”
The new term loan has a three-year maturity and is callable
after two years at par. It bears interest at LIBOR plus 8.00%,
subject to a 1.50% LIBOR floor and includes similar financial
covenants as the Partnership’s existing revolving credit facility,
among other terms. The loan is secured by a first lien interest in
the Partnership’s assets.
TD Securities (USA) LLC acted as debt advisor to NGL. Paul
Hastings LLP acted as legal counsel to NGL and Vinson & Elkins
LLP acted as legal counsel to Apollo Funds.
Forward Looking Statements
This press release may include “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. For further information, visit the
Partnership’s website at www.nglenergypartners.com.
About Apollo
Apollo is a leading global alternative investment manager with
offices in New York, Los Angeles, San Diego, Houston, Bethesda,
London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore,
Hong Kong, Shanghai and Tokyo. Apollo had assets under management
of approximately $316 billion as of March 31, 2020 in credit,
private equity and real assets funds invested across a core group
of nine industries where Apollo has considerable knowledge and
resources. For more information about Apollo, please visit
www.apollo.com. This press release does not constitute an offer of
Apollo or any Apollo Fund.
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NGL Contact 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
Apollo Contact Gary M. Stein Head of Investor Relations
Apollo Global Management, Inc. (212) 822-0467 gstein@apollo.com or
Joanna Rose Global Head of Corporate Communications Apollo Global
Management, Inc. (212) 822-0491 jrose@apollo.com
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