Deal sells class A convertible preferred units at $12.03 to Oaktree
By Devika Patel
Knoxville, Tenn., June 27 – NGL Energy Partners LP said it completed a $240 million private placement of 10.75% class A convertible preferred units with Oaktree Capital Management LP on June 24. The deal priced for $200 million on April 21 and was increased to $240 million on June 23.
The company sold the 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 received 3.6 million warrants.
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: | $240 million
|
| Price: | $12.03
|
| Dividends: | 10.75%
|
| Warrants: | 3.6 million
|
| Investor: | Oaktree Capital Management LP
|
| Pricing date: | April 21
|
| Upsized: | June 23
|
| Settlement date: | June 24
|
| Stock symbol: | NYSE: NGL
|
| Stock price: | $9.40 at close April 20
|
| Market capitalization: | $1.85 billion
|
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