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NGL Energy to pay down revolver with TransMontaigne sale proceeds
By Tanya Meyer
Chicago, Jan. 8 – NGL Energy Partners LP announced plans to repay borrowings outstanding under its revolving credit facility with proceeds from the sale of TransMontaigne GP LLC to ArcLight Capital Partners LP for $350 million in cash.
The deal is expected to close by the end of January, according to a news release.
“Within a 75-day period, NGL will have reduced capital requirements by approximately $200 million through the previously announced Grand Mesa/Saddlehorn transaction, and raised $350 million in cash in this transaction, while generating additional EBITDA and DCF,” said Mike Krimbill, NGL’s chief executive officer, in a news release.
“These recent actions provide many benefits to NGL and position it to successfully execute its growth plans in what continues to be a challenging market environment for MLPs.”
The proceeds will “significantly reduce leverage and increase liquidity,” the company added.
It also said that since the cash will cover its growth capital expenditures for the next 18 months it will not need to access the debt and equity capital markets to fund this spending.
NGL Energy is a Tulsa, Okla.-based diversified master limited partnership.
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