NGL Energy Partners LP Announces Closings of Retail Propane Sale and Sawtooth Joint Venture and Provides Update on Debt Reduction
TULSA, Okla.–(BUSINESS WIRE)–NGL Energy Partners LP (NYSE:NGL) (“Partnership”) today announced that
it has closed the previously announced transaction to sell a portion of
its Retail Propane business to DCC LPG for $200 million in cash,
adjusted for working capital. NGL announced this transaction in November
2017, closed the transaction on March 30, 2018 and retained all profits
from this business through March 31, 2018.
Additionally, the Partnership also closed the Sawtooth natural gas
liquids and refined products joint venture with Magnum Liquids, LLC, a
portfolio company of Haddington Ventures LLC, along with Magnum
Development, LLC and other Haddington-sponsored investment entities
(collectively “Magnum”) on March 30, 2018. Magnum acquired an
approximately 28.5% interest in Sawtooth from NGL, in exchange for
consideration consisting of a cash payment of approximately $37.6
million (excluding working capital) and the contribution of certain
refined products rights and adjacent leasehold. Magnum will have options
to acquire NGL’s remaining interest within the next three years for an
additional $182.4 million.
NGL has utilized the $237.6 million in proceeds from these transactions
to reduce indebtedness, including the repurchase of approximately $71.4
million in principal amount of its senior unsecured notes at various
prices in the open market during the quarter ended March 31, 2018. The
weighted average price paid in these open market transactions was
approximately 99.7% of par value. The remaining proceeds were used to
repay borrowings under the Partnership’s revolving credit facility.
The following table summarizes the Partnership’s outstanding debt
balances as of March 31, 2018 for the revolving credit facility and the
senior unsecured notes:
|
Face |
Prepayments / |
As Adjusted |
|||||
| (in thousands) | |||||||
| Revolving credit facility: | |||||||
| Expansion capital borrowings | $ | 125,000 | $ | (125,000 | ) | – | |
| Working capital borrowings | $ | 1,014,500 | $ | (45,000 | ) | $ | 969,500 |
| Senior Unsecured Notes: | |||||||
| 5.125% Notes due 2019 | $ | 360,781 | $ | (7,357 | ) | $ | 353,424 |
| 6.875% Notes due 2021 | $ | 367,048 | – | $ | 367,048 | ||
| 7.500% Notes due 2023 | $ | 656,589 | $ | (40,642 | ) | $ | 615,947 |
| 6.125% Notes due 2025 | $ | 412,507 | $ | (23,372 | ) | $ | 389,135 |
Forward-Looking Statements
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 we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you 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 our documents and reports filed with the SEC.
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, we
undertake 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. NGL owns and
operates a vertically integrated energy business with five primary
businesses: water solutions, crude oil logistics, NGL logistics, refined
products/renewables and retail propane. For further information, visit
the Partnership's website at www.nglenergypartners.com.
Contacts
NGL Energy Partners LP
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]
