Tulsa’s NGL Energy Partners Prices $700 Million of Senior Notes

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Tulsa-based NGL Energy Partners LP and its wholly owned subsidiary NGL Energy Finance Corp. announced Wednesday that they have priced a private offering of $700 million aggregate principal amount of 7.50% senior notes due 2023, representing an upsize from the previously announced private offering of $400 million aggregate principal amount of senior notes. NGL expects to use the net proceeds of this offering to reduce debt under its senior secured revolving credit facility, according to a company press release.

The notes are being initially sold to investors at a price of 100% of their principal amount. Interest on the notes will accrue at a rate of 7.50% per annum and will be payable semi-annually on May 1 and November 1 of each year, beginning on May 1, 2017. The maturity date of the notes is November 1, 2023.

NGL expects this private offering to close on October 24, 2016, subject to the satisfaction of customary closing conditions.

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. The company operates in over 250 locations across the United States.