NGL Energy Partners LP (NYSE:NGL) (the “Partnership” or “NGL”) today announced that on July 2, 2019, it completed a private placement to institutional investors of $400 million of its Class D Preferred Units and warrants to purchase common units representing equity interests in the Partnership.
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The Class D Preferred Units bear an initial preferred distribution rate of 9.00%, are redeemable at any time at the option of the Partnership, and are redeemable at the option of the holders after eight and one-half years or in connection with a change of control. 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 $14.54 per unit, and 10,000,000 common units at $17.45 per unit.
NGL used the net proceeds from the issuance of the Class D Preferred Units and the warrants to pay for a portion of the purchase price of the previously announced acquisition of assets from Mesquite Disposals Unlimited, LLC and Mesquite SWD Inc.
In addition, on July 2, 2019, NGL 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 (which have a $25.00 per unit liquidation preference), as payment of a portion of the purchase price for the Mesquite acquisition.
Source: Company Press Release