NGL Secures $950M Seven-Year Loan, Redeems 195,000 Preferred Units
NGL closed a seven-year $950 million senior secured term loan, $250 million more than its prior facility, to repay existing debt, redeem roughly 195,000 Class D Preferred Units and fund general corporate needs. Simultaneously, its asset-based revolving commitment was trimmed by $50 million to $425 million.
1. Term Loan Financing
NGL closed a seven-year $950 million senior secured term loan facility, up $250 million from its previous $687.8 million agreement. Net proceeds will repay existing term debt, fund preferred unit redemptions and support general corporate purposes.
2. Preferred Unit Redemption
NGL plans to redeem approximately 195,000 Class D Preferred Units using incremental loan and ABL proceeds, reducing outstanding units to about 316,000. This action is aimed at simplifying the partnership’s capital structure and lowering fixed claims.
3. Asset-Based Revolving Facility Amendment
The senior secured asset-based revolving facility was amended to cut commitments from $475 million to $425 million and adjust certain lending terms. The revised ABL provides continued liquidity while aligning with the new capital structure objectives.