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Gold/Mining/Energy : NGL to da moon (well, maybe to $10?)!!
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From: Elroy1/18/2024 7:20:32 AM
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From Yahoo chat board - they say the ratings companies have assigned ratings to the proposed $700m term loan.

S&P highlights:

"The company will use proceeds from this issuance to repay its outstanding senior unsecured notes due 2025 and 2026."

"we assigned our 'B+' issue-level rating to its new $700 million TLB" - TLB is Term Loan B

"NGL Energy will use the $700 million senior secured TLB to repay around $600 million of existing senior notes due in 2025 and 2026."

"We expect credit metrics to continue improving. Through fiscal 2025, we anticipate EBITDA of $700 million-$720 million per year. We also project adjusted leverage of around 5x for fiscals 2024 and 2025, with a further decline to 4.5x in 2026. We expect this leverage reduction to stem from the repayment of accrued distributions on preferred equity and gradual repayment of Class D balance."

"We expect NGL Energy to continue selling additional noncore assets, assisting in reducing preferred equity balance."

Fitch Highlights:

"Fitch has assigned a 'BB-'/'RR2' rating to Operating's proposed senior secured term loan B"

"Fitch has assigned the senior secured notes, which are co-issued by Operating and NGL Energy Finance Corp (Finance), a 'BB-'/'RR2' rating"

"The rating also reflects NGL's plan to end the arrearage on the preferred units with cash payments."

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The big news in that writing is the EBITDA forecast for the next fiscal year. Fiscal 2024 (March) is supposed to be $645m+, so EBITDA improving to $700m or more in the next twelve months sounds quite good.
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