NGL Energy Partners has completed the sale of its marine fleet of 13 towboats and 25 tank barges for roughly $112 million cash. (Source: Shutterstock)
NGL Energy Partners has completed the sale of its marine fleet for roughly $112 million cash, the company said on April 3.
The company’s marine fleet of 13 towboats and 25 tank barges was sold through two agreements announced on March 6, one with NGL Marine LLC and Campbell Transportation Co. Inc. and another between NGL Marine LLC and Magnolia Marine Transport Co., according to regulatory filings.
NGL said that in addition to the completion of the sale of its marine assets, a portion of the proceeds from the sale was used to repay an outstanding marine equipment loan of approximately $39 million. Remaining proceeds were used to repay amounts outstanding under its asset-based revolving credit facility.
NGL announced that at March 31, its total outstanding debt was slightly below $2.9 billion and that it expected total leverage to be approximately 4.5x.
The midstream MLP’s fleet provided waterborne transportation of refined products and crude oil for a diversified group of customers, including major oil refineries on the Gulf Coast.
“I am very grateful for the tremendous effort and focus by our employees on increasing adjusted EBITDA, selling underutilized assets and maximizing value on our asset packages,” NGL CEO Mike Krimbill said. “We have reduced total debt and achieved a leverage ratio below 4.75 times adjusted EBITDA more quickly than most thought possible.
Krimbill added that the company will continue to improve its balance sheet.
BofA Securities Inc. is serving as NGL’s financial adviser and McAfee & Taft of Tulsa, Oklahoma, is serving as NGL’s outside legal counsel.
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