NGL Energy Partners LP has successfully completed a significant $2.9 billion debt refinancing, as well as an amendment and extension of its asset-based revolving credit facility. The company's management provided insight into the purpose of these transactions and the impact they will have on NGL's financial position and operations.
According to the press release, the $2.9 billion refinancing transactions included a $2.2 billion senior secured notes offering and a seven-year $700.0 million senior secured term loan facility. The proceeds from these transactions will be utilized for various purposes, including funding the redemption of existing senior notes, repayment of borrowings under the senior secured asset-based revolving credit facility, and general corporate uses.
In conjunction with the refinancing, NGL's senior secured asset-based revolving credit facility underwent amendments, extending its maturity to February 2029 and implementing certain other changes to its terms.
Regarding the market's response to these developments, the company's shares experienced a marginal decline of -0.2%, reaching a trading price of $5.82. This data provides insight into investor sentiment following the announcement of the refinancing and credit facility extension.
In a forward-looking statement, NGL Energy Partners LP addressed the completion of the transactions and the related amendments, emphasizing the company's strategic approach to managing its financial obligations and optimizing its capital structure.
The company's full 8-K submission is available here.
