NGL Energy Partners has entered into an agreement with institutional investors for the private placement of $200 million of NGL’s class D preferred units and warrants to purchase common units representing equity interests in NGL.
NGL said the class D preferred units are additional preferred units of the same class as the $400 million of class D preferred units previously issued on July 2, in connection with financing NGL’s acquisition of assets from Mesquite Disposals Unlimited and Mesquite SWD.
NGL plans to use the net proceeds from the issuance of these additional class D preferred units and warrants to fund a portion of the $600 million planned acquisition of Hillstone Environmental Partners from Golden Gate Capital.
Hillstone provides water pipeline and disposal infrastructure solutions to producers with a core operational focus in the state line area of southern Eddy and Lea counties, N.M., and northern Loving County, Texas, in the Delaware Basin.
The closing of the sale of the units and the warrants is contingent upon (and is expected to occur in connection with) the Hillstone acquisition.
