NGL Energy Partners LP Provides Summary of Recent Financing Transactions

NGL Energy Partners LP (NYSE:NGL) (the Partnership) today announced the recent completion of the following financing transactions:

  • Issuance and sale of $45.0 million of 9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the Class C Preferred Units) on April 2, 2019;
  • Redemption of 7,468,978 of the Partnerships issued and outstanding 10.75% Class A Convertible Preferred Units (the Class A Preferred Units) on April 5, 2019, for approximately $102.5 million (including accrued and unpaid distributions) using net proceeds from the Class C Preferred Units as well as borrowings under its revolving credit facility. Immediately following the redemption, the Partnership had 12,473,191 Class A Preferred Units issued and outstanding, representing a face value of approximately $150.1 million; and
  • Issuance and sale of 7.500% Senior Notes due 2026 in the aggregate principal amount of $450.0 million on April 9, 2019, the net proceeds of which the Partnership will use to repay indebtedness under its revolving credit facility, which it may re-borrow from time to time for general partnership purposes.

These financing transactions have addressed our near term debt maturities and increased our liquidity, with a focus on continuing to maintain our strong credit metrics and on improving our cost of capital, stated Trey Karlovich, the Partnerships Chief Financial Officer. We have made tremendous progress on improving our leverage, and we will continue to focus on our balance sheet as we grow the business with the intention of keeping our compliance leverage below our stated 3.25x target.

The following table summarizes the principal amounts of the Partnerships outstanding debt under its revolving credit facility and its senior notes, as well as the face value of the Partnerships preferred equity balances, in each case, as of December 31, 2018, March 31, 2019, and March 31, 2019, pro forma for the transactions discussed above (in millions):

                 
    As Adjusted
December 31, 2018   March 31, 2019   March 31, 2019
Debt:
Expansion Capital Borrowings $ $ 275.0 $
Working Capital Borrowings 889.0 896.0 788.7
5.125% Senior Notes Due 2019 339.9
7.500% Senior Notes Due 2023 607.3 607.3 607.3
6.125% Senior Notes Due 2025 389.1 389.1 389.1
7.500% Senior Notes Due 2026 450.0
 
Preferred Equity:
10.75% Class A Convertible Preferred Units $ 240.0 $ 240.0 $ 150.1
9.00% Class B Perpetual Preferred Units 210.0 210.0 210.0
9.625% Class C Perpetual Preferred Units 45.0
 

As of March 31, 2019, and pro forma for the transactions discussed above, the Partnership would have had approximately $2.2 billion in total long-term debt, including $788.7 million outstanding on its revolving credit facility, and would have had approximately $838 million of remaining borrowing capacity under its revolving credit facility (net of approximately $138 million of outstanding letters of credit).

Forward-Looking Statements

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Certain matters contained in this Press Release include “forward-looking statements.” All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although the Partnership believes that the expectations reflected in these forward-looking statements are reasonable, the Partnership cannot provide any assurance that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of the Partnerships documents and reports filed with the United States Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, the Partnership undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements.

About NGL Energy Partners LP

NGL Energy Partners LP is a Delaware limited partnership. The Partnership owns and operates a vertically integrated energy business with four primary businesses: water solutions, crude oil logistics, NGL logistics and refined products/renewables. For further information, visit the Partnership’s website at www.nglenergypartners.com.

Trey Karlovich 918-481-1119
Executive Vice President and Chief
Financial Officer
[email protected]
or
Linda
Bridges 918-481-1119
Senior Vice President – Finance and Treasurer
[email protected]