The Firm advised the initial purchasers, led by J.P. Morgan Securities LLC, with respect to the $2.05 billion secured high yield notes offering by NGL Energy Partners LP (“NGL”), and the lead arrangers and lenders, led by JPMorgan Chase Bank, N.A., with respect to NGL’s new $500 million asset-based revolving credit facility (the “ABL”). The notes are secured by first-priority liens on the notes priority collateral, which includes most of NGL’s assets other than ABL priority collateral, which includes most of NGL’s accounts receivable, inventory and other current assets. The ABL is secured by first-priority liens on the ABL priority collateral and second-priority liens on the notes priority collateral. NGL will use the proceeds of the secured notes offering to refinance all amounts under its existing revolving and term credit facilities and to pay fees and expenses associated with the refinancing transactions.
NGL Energy Partners LP, a Delaware limited partnership, 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 transports, treats and disposes of produced water generated as part of the oil and natural gas production process.
The Simpson Thacher team included Brian Rosenzweig, Art Robinson, Patrick Baron, Richard Ragusa, Braxton Pitts and Analilia Gomez (Capital Markets); Jason Hwang, Andrew Lanius, Robert Rabalais and Evan West (Banking and Credit); Jon Pall (UCC); Tim Gallagher (Real Estate); Mike Isby and Tim Mulvihill (Environmental); Jennifer Neilsson (ECEB); Nancy Mehlman and Abigail Hopper (Tax); Melanie Jolson (IP); and Andrew Pagliughi (Blue Sky).