Management at Tulsa’s NGL Energy Partners LP say recent financial transactions have addressed the company’s debt and at the same time increased liquidity.
Trey Karlovich, the Partnership’s Chief Financial Officer issued a statement this week.
“We have made tremendous progress on improving our leverage, and we will continue to focus on our balance sheet as we grow the business with the intention of keeping our compliance leverage below our stated 3.25x target.”
He cited three major transactions in helping the company including the issuance and sale of $45 million in 9.625% Class C fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred units.
The company also redeemed 7,468,978 of the Partnership’s issued and outstanding 10.75% Class A Convertible Preferred Units on April 5 for nearly $102.5 million.
The third financial move was the issuance and sale of 7.500% Senior Notes due 2026 for $450 million on April 9.
“These financing transactions have addressed our near term debt maturities and increased our liquidity, with a focus on continuing to maintain our strong credit metrics and on improving our cost of capital,” added Karlovich.