NGL Energy Partners, together with its wholly owned subsidiary NGL Energy Operating, revealed plans to syndicate a seven-year, $700 million senior secured term loan facility. NGL Energy Operating will be the borrower under the term loan facility. NGL Energy Operating expects to use the net proceeds of the term loan facility, together with proceeds from any additional senior secured financing, to refinance existing debt (including repayment of existing senior notes); to pay related fees, costs and expenses; and for general corporate purposes.
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.
