NGL Energy Partners LP Announces Redemption of Its 10.75% Class A Convertible Preferred Units
May 13 2019 - 6:45AM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (the “Partnership” or
“NGL”) announced today that it has redeemed all 12,473,191 of the
remaining issued and outstanding 10.75% Class A Convertible
Preferred Units (“Class A Preferred Units”) for a total redemption
price of $13.2385 per unit, calculated as 110% of $12.035 per unit
(the Class A Preferred Unit Price), or $165.1 million in total,
plus all accrued but unpaid and accumulated distributions to, but
not including, the redemption date of May 11, 2019. The redemption
was funded through borrowings on the Partnership’s revolving credit
facility, resulting in expected annualized cost of capital savings
based on current borrowing rates of approximately $9 million.
“NGL is pleased to have partnered with Oaktree over the past
three years, including the participation of Jared Parker on our
Board of Directors,” stated Mike Krimbill, NGL’s CEO. “The original
equity contribution from funds managed by Oaktree Capital
Management, L.P. (“Oaktree”) in 2016 helped provide the capital
required to complete our Grand Mesa Pipeline and manage a very
challenging industry cycle. We appreciate the partnership with the
Oaktree team and look forward to future opportunities for our firms
to work together.”
“Mike, Trey and the entire NGL team have done a terrific job
growing value for NGL’s unit holders through a particularly
challenging market,” stated Jared Parker, co-portfolio manager of
Oaktree’s Infrastructure Investing strategy. “We are pleased to
have contributed to the company’s success. We value our partnership
with NGL and look forward to continuing to work together on new
opportunities.”
As a result of the full redemption of the Class A Preferred
Units, Oaktree will no longer hold Board representation rights and
NGL has accepted Mr. Parker’s resignation from the Board of
Directors of the Partnership’s General Partner. The information in
this press release shall not constitute a notice of redemption of
any of the Partnership’s securities.
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: water solutions, crude oil
logistics, NGL logistics and refined products/renewables. For
further information, visit the Partnership’s website
at www.nglenergypartners.com.
About Oaktree
Oaktree is a leader among global investment managers
specializing in alternative investments, with $119
billion in assets under management as of March 31, 2019.
The firm emphasizes an opportunistic, value-oriented and
risk-controlled approach to investments in credit, private equity,
real assets and listed equities. The firm has over 950 employees
and offices in 18 cities worldwide. For additional information,
please visit Oaktree’s website
at http://www.oaktreecapital.com/.
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version on businesswire.com: https://www.businesswire.com/news/home/20190513005127/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
NGL Energy Partners (NYSE:NGL)
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