Deal sells class A convertible preferred units at $12.03 to Oaktree
By Devika Patel
Knoxville, Tenn., April 22 – NGL Energy Partners LP said on Thursday that it intends to conduct a $200 million private placement of 10.75% class A convertible preferred units with Oaktree Capital Management LP.
The company will sell 16.6 million units at $12.03 apiece. The price per unit is a 27.98% premium to the April 20 closing share price of $9.40.
Oaktree also will receive 3.6 million warrants.
Settlement is expected by the end of June.
Proceeds will be used to repay borrowings under the company’s credit facility and other general partnership purposes.
NGL Energy is a Tulsa, Okla.-based diversified master limited partnership.
| Issuer: | NGL Energy Partners LP
|
| Issue: | Class A convertible preferred units
|
| Amount: | $200 million
|
| Units: | 16.6 million
|
| Price: | $12.03
|
| Dividends: | 10.75%
|
| Warrants: | 3.6 million
|
| Investor: | Oaktree Capital Management LP
|
| Pricing date: | April 21
|
| Stock symbol: | NYSE: NGL
|
| Stock price: | $9.40 at close April 20
|
| Market capitalization: | $1.5 billion
|
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