NGL Energy Partners LP raises USD400m from private placement of equity securities.
Global Banking News-July 3, 2019-NGL Energy Partners LP raises USD400m from private placement of equity securities
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Energy company NGL Energy Partners LP (NYSE:NGL) revealed on Tuesday that it has completed a private placement of USD400m of its Class D preferred units and warrants to purchase common units representing its equity interests.
Under the private placement, the company's Class D preferred units bear an initial preferred distribution rate of 9.00%, are redeemable at any time at its option and are redeemable at the option of the holders after eight and one-half years or in connection with a change of control.
The company added the warrants have a ten-year expiration date and will be exercisable upon and after the first anniversary of their issuance, for 7,000,000 common units at USD14.54 per unit and 10,000,000 common units at USD17.45 per unit.
Net proceeds from the issuance of the Class D Preferred Units and the warrants may be used by the company to pay for a portion of the purchase price of the acquisition of assets from Mesquite Disposals Unlimited, LLC and Mesquite SWD Inc.
Concurrently, the company issued 4,185,642 additional units out of its existing preferred equity interests designated Class B fixed-to-floating rate cumulative redeemable perpetual preferred units, with a USD25.00 per unit liquidation preference, as payment of a portion of the purchase price for the Mesquite acquisition.
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