NGL Energy Partners LP and its subsidiary announced plans for a new seven-year $700 million senior secured term loan facility to use the funds to refinance existing debt. It also said it will release its third quarter earnings report in early February.
Along with NGL Energy Operating LLC, it also intends to pay related fees, costs and expenses and general corporate purposes.
The company also stated there can be no assurances that NGL and NGL Energy Operating will be successful in their marketing efforts or that NGL Energy Operating will be able to enter into the Term Loan Facility (or the actual size or terms thereof). Closing of the Term Loan Facility, which is anticipated to occur in the first quarter of calendar 2024, is subject to obtaining lender commitments, as well as market conditions and the negotiation and execution of definitive documents and the satisfaction of customary closing conditions.
In connection with the Term Loan Facility syndication, NGL is providing certain preliminary estimates of financial information for its fiscal third quarter ended December 31, 2023.
For the three months ended December 31, 2023, NGL is estimating the following:
- Consolidated Adjusted EBITDA1: $150 – $160 million; and
- Capital expenditures (including both maintenance and growth): $30 – $40 million.
In addition, NGL is providing the following information regarding the outstanding principal amount of certain of its debt as of December 31, 2023:
- Asset-based revolving credit facility borrowings of: $55.0 million
- Senior notes:
- 6.125% senior unsecured notes due 2025: $281 million;
- 7.5% senior unsecured notes due 2026: $320 million; and
- 7.500% senior secured notes due 2026: $2.050 billion.
As of the date of this press release, NGL has not finalized its financial results nor completed its quarter-end closing for the quarter ended December 31, 2023, and its auditors have not reviewed the financial information for such period.
The preliminary estimates presented above are derived from NGL’s internal records and are based on information currently available to management. These preliminary estimates are subject to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results for the third quarter are finalized. Therefore, all of these preliminary estimates are subject to change. Further, these estimates are not a comprehensive statement of NGL’s financial results as of and for the quarter ended December 31, 2023, and NGL undertakes no obligation to update or revise these estimates prior to issuance of its financial statements.
NGL plans to issue its fiscal third quarter ended December 31, 2023 earnings press release post-market close on Thursday, February 8, 2024. Members of NGL’s management team intend to host an earnings call following this release on Thursday, February 8, 2024 at 4:00 pm CT to discuss its financial results.
