NGL Energy Partners LP 8-K

What Happened
NGL Energy Partners LP announced on March 12, 2026 that its wholly owned subsidiary, NGL Energy Operating LLC, closed a $950.0 million Term Loan Credit Agreement (Barclays as administrative agent). The Term Loan matures March 11, 2033, will amortize in equal quarterly installments equal to 1.0% of the original principal beginning with the quarter ending June 30, 2026, and bears interest at either a SOFR‑based rate (with customary successor-rate provisions) or an alternate base rate plus an applicable margin (SOFR margin 3.25%–3.50%; alternate base margin 2.25%–2.50%, depending on first‑lien leverage). Proceeds were used to repay the prior 2024 term loan and are expected to be used, in part, to redeem, repurchase or retire a portion of the Partnership’s outstanding Class D Preferred Units. The loan is secured by first‑priority liens on Notes‑TLB priority collateral and second‑priority liens on ABL priority collateral and contains customary covenants, defaults and mandatory prepayment provisions (excess cash flow, asset sales, non‑permitted debt).

The Partnership also entered a Seventh Amendment to its asset‑based revolving credit facility (the ABL Facility) on March 12, 2026. The ABL Amendment reduces total commitments from $475.0 million to $425.0 million, lowers the letter‑of‑credit sublimit and the incremental increase cap from $200.0 million to $100.0 million, reduces interest margins (SOFR loans: 2.00%–2.50%; alternate base: 1.00%–1.50%, based on fixed charge coverage ratio), and lowers commitment fees to 0.375% per annum (0.25% if fixed charge coverage ratio ≥1.75:1.00), among other changes. The Term Loan agreement also requires a quarterly debt service coverage ratio of at least 1.10:1.00 beginning with the quarter ending June 30, 2026.

Key Details

• $950.0 million Term Loan closed March 12, 2026; maturity March 11, 2033.
• Quarterly amortization = 1.0% of original principal starting Q2 2026; remaining balance due at maturity.
• Interest margins: SOFR loans 3.25%–3.50%; alternate base rate loans 2.25%–2.50% (margin varies with first‑lien leverage).
• ABL commitments reduced from $475.0M to $425.0M; letters‑of‑credit sublimit reduced to $100.0M; ABL interest margins and fees lowered and tied to fixed charge coverage ratio.
• Required quarterly debt service coverage ratio ≥ 1.10:1.00 beginning with quarter ending June 30, 2026.
• Loan is secured by first‑priority liens on Notes‑TLB priority collateral and second‑priority liens on ABL priority collateral.

Why It Matters
This filing documents a material refinancing and amendment package that extends term debt maturity to 2033, establishes new pricing and repayment mechanics for the Partnership’s term debt, and changes the size and pricing of the ABL facility. The Term Loan proceeds were used to retire the prior 2024 term loan and may be used to retire Class D Preferred Units, and the new covenants (including the 1.10 debt service coverage ratio) and collateral package are contractual constraints investors should be aware of when assessing NGL’s capital structure, liquidity and rights to cash flow.