NGL ENERGY PARTNERS LP (NYSE:NGL) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
Amendment to Credit Agreement
On June2, 2017, NGL Energy Partners LP (the Partnership), NGL
Energy Operating LLC, in its capacity as borrowers agent, and the
other subsidiary borrowers party thereto entered into Amendment
No.2 (the Credit Agreement
Amendment) to the Partnerships Amended and Restated
Credit Agreement (the Credit Agreement)
with Deutsche Bank Trust Company Americas, as administrative
agent, and the other financial institutions party thereto. Among
other changes, the Credit Agreement Amendment modified certain of
the Partnerships financial covenants to permit additional
flexibility over the next three quarters.
The Partnerships Leverage Ratio covenant increased to 5.50x
beginning for the period ending June 30, 2017, stepping down to
4.75x at March 31, 2018 and to 4.50x at March 31, 2019. The
Partnerships Senior Secured Leverage Ratio covenant was decreased
to 2.50x through December 31, 2017 before returning to the
current level of 3.25x for the remaining term of the facility.
Additionally, the Interest Coverage Ratio covenant was decreased
to 2.25x through December 31, 2017 before returning to 2.75x
thereafter. All capitalized terms used but not defined herein are
as defined in the Credit Agreement.
TheCredit Agreement Amendmentis filed as Exhibit10.1 to this
Current Report on Form8-K and incorporated herein by reference.
The above description of the material terms of theCredit
Agreement Amendmentdoes not purport to be complete and is
qualified in its entirety by reference to Exhibit10.1.
Item 8.01 Other Events
On June5, 2017, the Partnership issued a press release relating
to the foregoing, a copy of which is attached hereto as
Exhibit99.1.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
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ExhibitNo. |
|
Description |
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10.1 |
Amendment No.2 to Amended and Restated Credit Agreement, |
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99.1 |
Press release, dated June5, 2017 |
About NGL ENERGY PARTNERS LP (NYSE:NGL)
NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.