NGL Energy Partners has completed its private placement of 10.75% Class A Convertible Preferred Units with funds managed by Oaktree Capital Management, including a vehicle funded by Partners Group.
On April 21, 2016, the Partnership entered into an agreement to issue US$200 million of 10.75% Class A Convertible preferred units to Oaktree. On June 23, 2016, the Partnership and Oaktree amended the purchase agreement increasing the aggregate amount of the private placement from US$200 million to US$240 million.
NGL expects to use the net proceeds from the issuance of the preferred units and warrants to repay borrowings outstanding on its revolving credit facility, which may be re-borrowed in the future to fund capital expenditures and for other general partnership purposes.
The Partnership and Oaktree have also formed a strategic relationship to pursue future opportunities within the Partnership’s current business segments.
In connection with the sale of the units, RBC Capital Markets, UBS Investment Bank and Deutsche Bank Securities acted as placement agents and financial advisors to NGL and Andrews Kurth LLP acted as legal counsel to NGL. Barclays acted as financial advisor to Oaktree and Vinson & Elkins acted as legal counsel to Oaktree.