Tulsa-based NGL Energy Partners LP announced this week it has completed part of its deleveraging plan using the $300 million in proceeds received from the sale of its 50% interest in Glass Mountain Pipeline LLC.
The resulting debt reduction includes a prepayment in full of all its 6.65% senior secured notes due June 19, 2022. The effective interest rate of the senior secured notes was 8.40% at the time of prepayment on December 29, 2017. In accordance with the terms of the senior secured notes, the prepayment included a make-whole premium of approximately $17.5 million, in addition to the outstanding principal balance and accrued interest.
NGL also repurchased nearly $88.7 million in principal amount of its senior unsecured notes in the open market during the quarter ending Dec. 31, 2017. Company leaders called the debt reduction and interest savings a “significant move towards accomplishing NGL’s goals of deleveraging the balance sheet and increase its financial flexibility.”
NGL also expects to close its previously announced $200 million sale of certain Retail Propane assets to DCC LPG on March 31, 2018. The company intends to use the proceeds to further reduce indebtedness.
