Daily News: June 4, 2018

TD, CIBC Provide $400MM to Support Superior Plus NGL Buy

Superior Plus entered into an agreement with NGL Energy to acquire all of the outstanding equity interest in NGL Propane, the company’s retail propane distribution business, for total cash consideration of $900 million.

To finance part of the transaction, Superior’s wholly owned subsidiaries, Superior Plus US Financing and Superior Plus, entered into a commitment letter with TD Bank and Canadian Imperial Bank of Commerce, to provide a $400 million 12-month senior secured bridge credit facility. For the remainder, Superior intends to draw on its current revolving credit facilities. Superior is also considering implementing longer term debt financing alternatives.

“The acquisition of NGL Propane is a highly strategic and transformative transaction for Superior and represents an exciting opportunity to leverage our current core competencies and integrated supply capacities with NGL Propane’s strong Eastern U.S. retail platform,” said Luc Desjardins, CEO of Superior. “The acquisition of NGL Propane significantly expands our U.S. propane distribution business and solidifies Superior as a leading North American propane distributor.”

Superior also entered into an agreement with a syndicate of underwriters co-led by TD Securities and CIBC Capital Markets to issue, on a bought deal basis, approximately C$400 million ($309 million) of subscription receipts to finance a portion of the purchase price.

TD Securities and CIBC Capital Markets are acting as financial advisors to Superior. Orrick, Herrington & Sutcliffe and Torys are acting as legal counsel to Superior.