Tulsa’s NGL Energy Partners LP is selling part of its Retail Propane business in a $200 million deal.
NGL announced Monday it will sell a portion of the business to DCC LPG. The sale was announced last fall and was closed on March 30 of this year.
At the same time, NGL said its partnership closed the Sawtooth natural gas liquids and refined products joint venture with Magnum Liquids LLC which is a portfolio company of Haddington Ventures LLC. The $37.6 million venture was also formally closed on March 30. Magnum acquired nearly 28.5% interest in Sawtooth through the cash and contribution of certain refined products rights and adjacent leasehold.
Magnum will now have options to acquire the rest of NGL’s interest within the next three years for another $182.4 million.
NGL plans to use the $237.6 million in proceeds to reduce its debt and also to repurchase nearly $71.4 million in senior unsecured notes.