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NGL Energy (NGL) Prices Senior Notes Worth $500 Million

U.S.-based integrated partnership NGL Energy Partners LPNGL and its subsidiary NGL Energy Finance Corp recently announced the pricing of senior notes offering worth $500 million, scheduled to mature on Mar 1, 2025. The notes carrying a coupon rate of 6.125% would be offered to selected investors. The notes are sold at 100% of their face value and the investors will be paid semiannual interests on Mar 1 and Sep 1. Interest payments would commence from September this year. The offering is likely to close on Feb 22, subject to satisfactory closing conditions.

It is expected that the net proceeds from these senior notes and the partnership's common units would be used to lower the borrowings under its senior credit facility.

The partnership recently amended its revolving credit facility and extended its term to Oct 2021. The revised facility has an initial borrowing capacity of around $1.8 billion, out of which $1 billion would be directed toward the working capital requirements of the partnership and the general corporate purposes. The remaining amount will be used for growth projects, acquisitions and other capital expenditures.

Zacks Rank & Key Picks

Headquartered Oklahoma, NGL Energy is a vertically integrated partnership dealing in retail propane, oil and NGL logistics, water solutions and refined products. The partnership currently carries a Zacks Rank #5 (Strong Sell).

NGL Energy underperformed the Zacks categorized industry in the last one month. During the aforesaid period, the partnership's units fell by almost 3% while the broader industry gained 1%.

NGL Energy underperformed the Zacks categorized Refining and Marketing MLP industry in the last one month. During the aforesaid period, the partnership's units fell by almost 3% while the broader industry gained 1%.

Some better-ranked layers in the industry include Global Partners LP GLP , Sprague Resources LP SRLP and AmeriGas Partners, L.P APU . Global Partners and Sprague Resources carry a Zacks Rank #2 (Buy), while AmeriGas Partners has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Global Partners is expected to register year-over-year growth of 291% in earnings in 2017.

Sprague Resources is expected to record year-over-year growth of 8% and 114% in revenues and earnings, respectively, in 2017.

AmeriGas Partners is expected to witness year-over-year growth of 8.5% and 7% on revenues and earnings, respectively, in 2017.

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AmeriGas Partners, L.P. (APU): Free Stock Analysis Report

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NGL ENERGY PARTNERS LP (NGL): Free Stock Analysis Report

Sprague Resources LP (SRLP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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