NGL announces plan for redemption of $328 million in notes

 

Tulsa-based NGL Energy Partners LP announced it’s called for the redemption of more than $328 million in outstanding senior notes.

The company called for redemption of $328,005,000 aggregate outstanding principal amount of its 5.125% Senior Notes due this year.

On March 15, 2019, the registered holders of the notes will get a redemption payment equal to the Make-Whole Price.

Here is the full release from NGL:

NGL Energy Partners LP (NYSE: NGL) (“NGL”) today announced that it has called for redemption all $328,005,000 aggregate outstanding principal amount of its 5.125% Senior Notes due 2019 (the “Notes”). On March 15, 2019 (the “Redemption Date”), registered holders of such notes will receive a redemption payment of equal to the Make-Whole Price applicable to a redemption of the Notes on such date.

As defined in the indenture governing the Notes, “Make-Whole Price” with respect to any Notes to be redeemed, means an amount equal to the greater of: (1) 100% of the principal amount of such Notes; and (2) the sum of the present values of (a) 100% of the principal amount of such Notes and (b) the remaining scheduled payments of interest from the Redemption Date to June 15, 2019 (not including any portion of such payments of interest accrued as of the Redemption Date) discounted back to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the indenture governing the Notes) plus 50 basis points; plus, in the case of both clauses (1) and (2), accrued and unpaid interest on such Notes, if any, to the Redemption Date. The Treasury Rate shall be calculated no later than the fourth business day preceding the Redemption Date.

Upon payment in full on the Redemption Date (the “Redemption Payment”), interest on the Notes will cease to accrue on and after the Redemption Date. Following the payment of the Redemption Payment on the Redemption Date, there will be no Notes that remain outstanding.

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