NGL Energy Partners LP Announces Pricing of Class C Preferred Unit Offering
March 27 2019 - 6:37AM
Business Wire
NGL Energy Partners LP (NYSE:NGL) announced on March 26, 2019,
that it has priced its underwritten public offering of 1,600,000 of
its 9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units, liquidation preference $25.00 per unit,
representing limited partner interests in NGL, at a price of $25.00
per Class C Preferred Unit. NGL has granted the underwriters a
30-day option to purchase up to 240,000 additional Class C
Preferred Units, solely to cover over-allotments, if any. NGL
expects to receive approximately $38,240,000 in net proceeds from
the offering after deducting the underwriters’ discount and NGL’s
estimated offering expenses, assuming no exercise by the
underwriters of their option to purchase additional Class C
Preferred Units, or approximately $44,051,000 if the underwriters
exercise their option to purchase additional Class C Preferred
Units in full. The offering is expected to close on April 2, 2019,
subject to customary closing conditions.
NGL intends to use the net proceeds from this offering to repay
indebtedness under its revolving credit facility, which NGL may
re-borrow from time to time for general partnership purposes,
including to redeem or repurchase all or a portion of NGL’s Class A
Preferred Units. NGL has agreed to redeem approximately $90 million
of NGL’s Class A Preferred Units with the net proceeds from this
offering and borrowings available under its revolving credit
facility for a total redemption cost of $100 million.
RBC Capital Markets, LLC, Morgan Stanley & Co. LLC and UBS
Securities LLC are acting as joint book-running managers for the
offering. Stifel, Nicolaus & Company, Incorporated is acting as
joint-lead manager and Raymond James & Associates, Inc. is
acting as co-manager for the offering. When available, copies of
the preliminary prospectus supplement, prospectus supplement and
the accompanying prospectus, relating to the offering may be
obtained free of charge on the United States Securities and
Exchange Commission’s website at www.sec.gov or from RBC Capital
Markets, LLC, Brookfield Place, 200 Vesey St., 8th Floor, New York,
NY 10281, Telephone: (866) 375-6829, Morgan Stanley & Co. LLC,
180 Varick Street, New York, New York 10014, Attention: Prospectus
Department, Telephone: (866) 718-1649, and from UBS Securities LLC,
1285 Avenue of the Americas, New York, New York 10019, Attention:
Prospectus Department, Telephone: (888) 827-7275.
The Class C Preferred Units are being offered and sold pursuant
to an effective shelf registration statement filed with the United
States Securities and Exchange Commission. The offering is being
made only by means of a prospectus and related prospectus
supplement. 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.
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 United States 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 is a Delaware limited partnership. NGL
owns and operates a vertically integrated energy business with four
primary businesses: Crude Oil Logistics; Water Solutions; NGL
Liquids; and Refined Products and Renewables. For further
information, visit the NGL’s website at
www.nglenergypartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190327005322/en/
NGL Energy Partners LPInvestor Relations: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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