NGL Energy Partners amends revolver to revise financial covenants

By Tali Rackner

Minneapolis, June 5 – NGL Energy Partners LP amended its revolving credit facility by expanding its financial covenants over the next three quarters, according to a press release.

Effective June 2, the total leverage covenant increased to 5.5 times for the period ending June 30, stepping down to 4.75 times at March 31, 2018 and to 4.5 times at March 31, 2019.

The senior secured leverage covenant was lowered to 2.5 times through Dec. 31, 2017 before returning to 3.25 times thereafter.

In addition, the interest coverage covenant was decreased to 2.25 times through Dec. 31, 2017 before returning to 2.75 times thereafter.

Other changes include the addition of an additional tier to the pricing grid reflecting the increased total leverage covenant and limitations on additional debt and distribution increases during elevated leverage periods, the release said.

NGL Energy is a Tulsa, Okla.-based vertically integrated energy company.

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