NGL Energy Partners To Buy Gavilon's Energy Business For $890 Mln - Quick Facts

(RTTNews) - NGL Energy Partners LP (NGL) Wednesday announced that it has reached a definitive agreement to acquire all of the equity interests of Gavilon, LLC, the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management.

The company said the definitive agreement contemplates the purchase of Gavilon's energy business on a cash-free, debt-free basis for a cash purchase price of $890 million.

The acquisition is expected to be immediately accretive to NGL's distributable cash flow per unit.

The company said the purchase price includes approximately $200 million of working capital, subject to a customary adjustment based on a target level of working capital to be delivered by Gavilon at the closing of the proposed deal.

The company expects the acquisition to close in December, subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

Further, NGL Energy announced that the Partnership has amended its revolving credit facility to increase the total borrowing capacity to $1.671 billion from $1.05 billion.