NGL Energy Prices Preferred Issue–UPDATED TICKER

The OTC Grey market ticker of NGLPP has been assigned.

Midstream MLP NGL Energy Partners (NYSE:NGL) has priced a new fixed-to-floating rate preferred units with an in initial coupon of 9.625%.

The issue will pay the fixed coupon rate until 4/15/2024 after which it will float at a rate of 3 month Libor plus a spread of 7.384%.

The pricing term sheet can be seen here.

Being a MLP this issue will generate a K-1 at tax time and the distributions will not be qualified for preferential tax treatment.

The issue is unrated.

This issue will trade under the permanent ticker of NGL-C when it begins to trade on the NYSE, but in the meantime will trade on the OTC Grey market although the ticker has not been announced.

10 thoughts on “NGL Energy Prices Preferred Issue–UPDATED TICKER”

  1. NGL Energy Partners LP Announces $450 Million Offering of Senior Notes

    Business Wire Business WireApril 3, 2019

    NGL Energy Partners LP (NGL) and its wholly owned subsidiary NGL Energy Finance Corp. today announced that they intend to offer, subject to market and other conditions, $450 million in aggregate principal amount of senior notes due 2026. NGL expects to use the net proceeds from this offering to repay indebtedness under its revolving credit facility, which NGL may reborrow from time to time in the future for general partnership purposes.

    The notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons, other than U.S. persons, outside of the United States pursuant to Regulation S under the Securities Act.

    The offer and sale of the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States of America absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

  2. Whooo that’s rich! NGL has two issues to roll due in July with old coupons at 5.125%. Surprised they have to go to public market and at such a premium.
    Sometimes things are exactly what they seem.
    Should be a good trade in this environment of yield chasing. JA

    1. Joel, it looks like there is a $362+MM bond due (that you referenced) in July 2019 This NGL IPO preferred will only be a fraction of what NGL will need to redeem this corporate bond. It’s quite surprising that NGL wouldn’t or couldn’t float a large mid/short baby bond (5 to 10 years) at a much lower rate than 9.625%…
      Wishing you profitable investing, Nomad

      1. The refi will go to a bank in a higher tranche…you can bet on it! This will just be working capital security for the bank. That’s how the problems in these business started. One opinion. JA

    2. Joel, this is a massive deal and it’s 144A so there is no retail presence. Kind of the way the SEC sticks it to the little retail guy by just letting the institutional a. Punts buy this deals.
      People are oceans, you cannot know them by their surface, Nomad

  3. My buddy at Morgan Stanley Syndicate said the 9.625% NGL IPO preferred will close today at 2 PM and begin trading tomorrow; though it may only be instutionally traded tomorrow. Also said the rate was so “high” because the lead managers/ underwriters (Stifel, Nicolaus & Company, Incorporated is acting as joint-lead manager and Raymond James & Associates, Inc. is acting as co-manager for the offering) pushed NGL so hardbecause NGL wanted $45 million from the offering and the managers only wanted to do a $20 million deal.
    Not all those who wander are lost, Nomad

  4. NGL posted strong earnings last quarter, and its stock has been climbing. This new preferred may be a good bet.

    1. Yes Wilson I agree. They have been in major revamping of the business for a few years and are doing well now.

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