NGL Closes $950 Million Term Loan, Amends Asset-Based Revolving Credit Facility, To Redeem Approximately 195,000 Class D Preferred Units (Form 8-K)

NGL Closes $950 Million Term Loan, Amends Asset-Based Revolving Credit Facility, To Redeem Approximately 195,000 Class D Preferred Units

TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE: NGL) ("NGL") through its wholly owned subsidiaries NGL Energy Operating LLC and NGL Energy Finance Corp., closed a new seven-year $950.0 million senior secured term loan facility (the "Term Loan"). The net proceeds from the Term Loan are expected to be used, among other things, (i) to repay all borrowings under NGL's existing term loan credit agreement, (ii) to redeem, repurchase or otherwise retire a portion of NGL's Class D Preferred Units (the "Class D Units") and (iii) to the extent of any remaining net proceeds, for general corporate purposes.

The final amount of the Term Loan reflects an additional $250.0 million of secured debt financing, with the amount thereunder increased to $950.0 from the current amount of $687.8 million.

As Mike Krimbill, NGL's CEO, stated: "The successful execution of the incremental secured debt financing represents a meaningful step toward a simpler and more flexible capital structure. The incremental $250 million in proceeds combined with additional funds from the ABL will enable NGL to repurchase approximately 195,000 Class D Units. Subsequent to this transaction, there will be approximately 316,000 Class D Units remaining."

In addition, in connection with the closing of the Term Loan, NGL's senior secured asset-based revolving credit facility was amended to reduce the aggregate amount of commitments thereunder from $475.0 million to $425.0 million and to make certain other changes to the terms thereof.