NGL Energy Partners LP Announces Pricing of Class B Preferred Unit Offering
TULSA, Okla.–(BUSINESS WIRE)–NGL Energy Partners LP (NYSE:NGL) today announced it has priced its
underwritten public offering of 7,400,000 of its 9.00% Class B
Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units,
liquidation preference $25.00 per unit, representing limited partner
interests in NGL, at a price of $25.00 per Class B Preferred Unit. NGL
has granted the underwriters a 30-day option to purchase up to 1,110,000
additional Class B Preferred Units, solely to cover over-allotments, if
any. NGL expects to receive approximately $179 million in net proceeds
from the offering after deducting the underwriters’ discount and NGL’s
estimated offering expenses, assuming no exercise by the underwriters of
their option to purchase additional Class B Preferred Units, or
approximately $206 million if the underwriters exercise their option to
purchase additional Class B Preferred Units in full. The offering is
expected to close on June 13, 2017, subject to customary closing
conditions.
NGL intends to use the net proceeds from this offering to repay
indebtedness under its revolving credit facility, which NGL may
re-borrow from time to time for general partnership purposes, including
to retire other senior indebtedness.
UBS Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets,
LLC are acting as joint book-running managers for the offering. Stifel,
Nicolaus & Company, Incorporated is acting as co-manager for the
offering. When available, copies of the preliminary prospectus
supplement, prospectus supplement and the accompanying prospectus
relating to the offering may be obtained free of charge on the United
States Securities and Exchange Commission’s website at www.sec.gov
or from UBS Securities LLC, 1285 Avenue of the Americas, New York, New
York 10019, Attention: Prospectus Department, Telephone: (888) 827-7275,
Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New
York 10014, Attention: Prospectus Department, or from RBC Capital
Markets, LLC, Three World Financial Center, 200 Vesey St., 8th Floor,
New York, NY 10281, Telephone: (866) 375-6829.
The Class B Preferred Units are being offered and sold pursuant to an
effective shelf registration statement filed with the United States
Securities and Exchange Commission. The offering is being made only by
means of a prospectus and related prospectus supplement. This press
release does not constitute an offer to sell or the solicitation of an
offer to buy the securities described herein, nor shall there be any
sale of these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements. Actual results could
vary significantly from those expressed or implied in such statements
and are subject to a number of risks and uncertainties. While NGL
believes such forward-looking statements are reasonable, NGL cannot
assure they will prove to be correct. The forward-looking statements
involve risks and uncertainties that affect operations, financial
performance, and other factors as discussed in filings with the
Securities and Exchange Commission. Other factors that could impact any
forward-looking statements are those risks described in NGL’s annual
report on Form 10-K, quarterly reports on Form 10-Q, and other public
filings. You are urged to carefully review and consider the cautionary
statements and other disclosures made in those filings, specifically
those under the heading “Risk Factors.” NGL undertakes no obligation to
publicly update or revise any forward-looking statements except as
required by law.
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 NGL’s website at www.nglenergypartners.com.
Contacts
NGL Energy Partners LP
Investor Relations:
Trey Karlovich,
918-481-1119
Executive Vice President and Chief Financial Officer
[email protected]
or
Linda
Bridges, 918-481-1119
Vice President – Finance and Treasurer
[email protected]