NGL Energy Partners, through its wholly-owned subsidiaries NGL Energy Operating and NGL Energy Finance, closed $2.9 billion in refinancing transactions, consisting of the company’s previously announced $2.2 billion senior secured notes offering of $900 million in aggregate principal amount of 8.125% senior secured notes due 2029, $1.3 billion in aggregate principal amount of 8.375% senior secured notes due 2032 and a seven-year, $700 million senior secured term loan facility.
In addition, in connection with the closing of the refinancing transactions, NGL’s senior secured asset-based revolving credit facility was amended to extend the maturity to February 2029 and to make certain other changes to the terms thereof. No changes were made to the aggregate amount of commitments under the facility.
According to an 8K filed with the SEC, Toronto Dominion (Texas), a subsidiary of TD Bank Group, is the administrative and collateral agent for the new term loan, while JPMorgan Chase is the administrative and collateral agent and issuing lender for the amended revolver.
NGL is using the net proceeds from these transactions to fund the redemption and related discharge of the indentures governing NGL’s existing 6.125% senior notes due 2025, 7.5% senior notes due 2026 and 7.5% senior secured notes due 2026, including any applicable premiums and accrued and unpaid interest. In addition, the company will use the net proceeds from the transactions to pay fees and expenses in connection with the indenture discharges, to repay all borrowings under the company’s senior secured asset-based revolving credit facility and, to the extent of any remaining net proceeds, for general corporate purposes.
