NGL Energy unit gets two revolvers due 2017 totaling $650 million

By Angela McDaniels

Tacoma, Wash., June 25 - NGL Energy Partners LP subsidiary NGL Energy Operating LLC entered into a $650 million senior secured credit facility due June 19, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The facility consists of a $200 million revolving credit facility for working capital requirements and other general corporate purposes and a $450 million revolver for acquisitions, internal growth projects and capital expenditures relating to the repair and maintenance of existing assets.

The facility has a $50 million accordion feature.

The initial interest rate is Libor plus 300 basis points. The margin over Libor ranges from 275 bps to 375 bps and depends on the company's consolidated leverage ratio. The initial commitment fee is 37.5 bps. It ranges from 37.5 bps to 50 bps.

Deutsche Bank Trust Co. Americas is the administrative agent. Royal Bank of Canada is syndication agent. BNP Paribas, PNC Bank, NA and Royal Bank of Scotland plc are the documentation agents. Deutsche Bank Securities Inc., RBC Capital Markets, BNP Paribas Securities Corp., PNC Capital Markets LLC and RBS Securities Inc. acted as joint lead arrangers and bookrunners.

Initial borrowings under the facility and the proceeds of a $250 million placement of 6.65% senior secured notes due 2022 were used to finance the company's merger with High Sierra Energy LP and High Sierra Energy GP, LLC and to repay in full NGL's prior revolver and High Sierra's credit facility.

The total purchase price was $693 million, including $38 million of working capital. It was financed with a combination of $153 million of cash, $95 million of assumed debt and $445 million of equity.

Following the completion of the mergers, about $75 million of capacity remains undrawn under the working capital component of the new credit facility and about $200 million remains undrawn and available under the acquisition component.

NGL Energy Partners is a Tulsa, Okla.-based energy business with four operating segments: water treatment, midstream, wholesale supply and marketing and retail propane and heating oil.

High Sierra is based in Denver and has three core business segments: crude oil gathering, transportation and marketing; water treatment, disposal, recycling and transportation; and natural gas liquids transportation and marketing.

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