NGL Energy uses revolver draw to redeem convertible preferred units

By Rebecca Melvin

New York, May 13 – NGL Energy Partners LP said it has financed the $165.1 million redemption of its outstanding 10.75% class A convertible preferred units through a drawdown on the company’s revolving credit facility, according to a news release.

The financing is expected to result in annualized cost of capital savings based on current borrowing rates of roughly $9 million.

As a result of the full redemption of the units, Oaktree Capital Management LP will no longer hold NGL board representation rights.

NGL is a Tulsa, Okla.-based vertically integrated energy company.

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