NGL Energy Partners LP Announces Closings of Retail Propane Sale & Sawtooth Joint Venture & Provides Update on Debt Reduction
April 02 2018 - 6:20AM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (“Partnership”) today
announced that it has closed the previously announced transaction
to sell a portion of its Retail Propane business to DCC LPG for
$200 million in cash, adjusted for working capital. NGL announced
this transaction in November 2017, closed the transaction on March
30, 2018 and retained all profits from this business through March
31, 2018.
Additionally, the Partnership also closed the Sawtooth natural
gas liquids and refined products joint venture with Magnum Liquids,
LLC, a portfolio company of Haddington Ventures LLC, along
with Magnum Development, LLC and other
Haddington-sponsored investment entities (collectively “Magnum”) on
March 30, 2018. Magnum acquired an approximately 28.5% interest in
Sawtooth from NGL, in exchange for consideration consisting of a
cash payment of approximately $37.6 million (excluding working
capital) and the contribution of certain refined products rights
and adjacent leasehold. Magnum will have options to acquire NGL’s
remaining interest within the next three years for an additional
$182.4 million.
NGL has utilized the $237.6 million in proceeds from these
transactions to reduce indebtedness, including the repurchase of
approximately $71.4 million in principal amount of its senior
unsecured notes at various prices in the open market during the
quarter ended March 31, 2018. The weighted average price paid in
these open market transactions was approximately 99.7% of par
value. The remaining proceeds were used to repay borrowings under
the Partnership’s revolving credit facility.
The following table summarizes the Partnership’s outstanding
debt balances as of March 31, 2018 for the revolving credit
facility and the senior unsecured notes:
Face Amount
Prepayments /
Repurchases
As Adjusted
(in thousands) Revolving credit facility: Expansion capital
borrowings $ 125,000 $ (125,000 ) - Working capital borrowings $
1,014,500 $ (45,000 ) $ 969,500 Senior Unsecured Notes: 5.125%
Notes due 2019 $ 360,781 $ (7,357 ) $ 353,424 6.875% Notes due 2021
$ 367,048 - $ 367,048 7.500% Notes due 2023 $ 656,589 $ (40,642 ) $
615,947 6.125% Notes due 2025 $ 412,507 $ (23,372 ) $ 389,135
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 we believe that the
expectations reflected in these forward-looking statements are
reasonable, we cannot assure you 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
our documents and reports filed with the SEC.
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, we undertake 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. NGL owns and operates a vertically integrated energy
business with five primary businesses: water solutions, crude oil
logistics, NGL logistics, refined products/renewables and retail
propane. 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/20180402005276/en/
NGL Energy Partners LPTrey 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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