- NGL Energy Partners LP (NYSE: NGL) has announced that it entered into a new $250 million term loan facility with certain funds and accounts managed by affiliates of Apollo Global
NGL Energy Partners LP (NYSE: NGL) has announced that it entered into a new $250 million term loan facility with certain funds and accounts managed by affiliates of Apollo Global Management Inc (NYSE: APO) to refinance its existing $250 million bridge term loan facility — which was established in July 2019 with TD Securities (USA) LLC as lead arranger and bookrunner and The Toronto-Dominion Bank, New York Branch as initial lender to finance a portion of the acquisition of Mesquite Disposals Unlimited LLC.
What does NGL Energy Partners LP do? NGL is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids, and other products. And the company transports, treats, and disposes of produced water generated as part of the oil and natural gas production process.
The new term loan has a three-year maturity and is callable after two years at par. And it bears interest at LIBOR plus 8.00% (subject to a 1.50% LIBOR floor and includes similar financial covenants as the partnership’s existing revolving credit facility, among other terms). And the loan is secured by a first lien interest in the partnership’s assets.
TD Securities (USA) LLC had acted as debt advisor to NGL. And Paul Hastings LLP acted as legal counsel to NGL and Vinson & Elkins LLP acted as legal counsel to Apollo Funds.
Key Quotes:
“We are pleased to work with Apollo, a leading investment management firm, and their well-respected team, on this transaction to term out the bridge facility we utilized last summer to fund the Mesquite transaction. The Apollo team has worked closely with our management team over the past several weeks conducting due diligence and preparing documentation to complete this financing. We believe an investment by Apollo of this magnitude is a strong endorsement of our business model, strategy and future growth opportunities, particularly in our Water Solutions business. We also appreciate the support of TD in providing the initial facility and for being an important relationship bank in our revolving credit facility.”
– NGL CEO Mike Krimbill
“We are pleased to provide this new facility to NGL, which has built a diversified midstream company with a premier U.S. water infrastructure franchise. With its high-quality assets, customer base and management team led by CEO Mike Krimbill, we believe NGL is well-positioned for future success.”
– Wilson Handler and Andy Safran of Apollo’s Natural Resources Private Equity business
“This financing solution reflects our expanding large-scale direct lending capabilities and completing it in partnership with our Natural Resources Private Equity team underscores the benefits of Apollo’s integrated platform.”
– Apollo Credit Managing Director Dan Vogel
