NGL closes on $2 billion in new financing

 

NGL Energy Operating closed on nearly $2 billion in notes in the past week, using the proceeds to repay all outstanding borrowings and to terminate its restated credit agreement from 2017.

The closing also terminated the company’s $250 million term credit agreement dated 2019.

The $2.05 billion in new senior notes were issued as part of an indenture which put NGL under certain limitations including restrictions on distributions or a repurchase of stock.

As part of the SEC filing, NGL indicated it cannot predict when it might be able to satisfy the distribution restrictions, but they are not expected to be satisfied soon.

The new credit agreement was with JPMorgan Chase Bank, N.A. which was the administrative agent, collateral agent and issuing lender. It included a $500 million asset based revolving credit facility

The agreement also included limitations on indebtedness, liens, mergers and consolidations. Other financial institutions that were part of the new credit agreement included Wells Fargo Bank, National Association, Toronto-Dominion Bank, New York Branch, Royal Bank of Canada and Barclays Bank PLC.

 

 

 

Click here to view the SEC filing.