Tulsa’s NGL Energy Partners LP announced an increase in its offer of more than $2 billion in senior secured notes.
The company explained that through its wholly owned subsidiaries NGL Energy Operating LLC and NGL Energy Finance Corp., it was upsizing the offer of their senior secured notes offering from $2.1 billion to $2.2 billion.
The firms priced $900 million in aggregate principal amount of 8.125% senior secured notes due 2029 and $1.3 billion in aggregate principal amount of 8.375% senior secured notes due 2032 .
NGL plans to use the net proceeds from the offering and combine them with borrowings under a new seven-year $700 million senior secured term loan facility. It will then fund the redemption and any discharge of the indentures governing the company’s existing 6.125% senior notes due 2025, 7.5% senior notes due 2026, and 7.500% senior secured notes due 2026.
The Notes are being initially sold to investors at a price of 100% of their principal amount and interest on the Notes will be payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning on May 15, 2024. Interest on the 2029 Notes will accrue at a rate of 8.125% per annum. The maturity date of the 2029 Notes is February 15, 2029. Interest on the 2032 Notes will accrue at a rate of 8.375% per annum. The maturity date of the 2032 Notes is February 15, 2032.