Genesis Energy, L.P. Announces Tender Offer for Any and All of Aggregate Principal Amount of Its 5.625% Senior Notes Due 2024

Rhea-AI Summary

Genesis Energy, L.P. (NYSE: GEL) has initiated a cash tender offer to acquire all outstanding 5.625% senior unsecured notes due 2024. Currently, $341,135,000 of these notes are outstanding as of January 18, 2023. The offer will expire at 5:00 p.m. on January 24, 2023, with settlement expected on January 25, 2023. Holders of validly tendered notes will receive $1,001.70 per $1,000 principal amount, plus accrued interest. The tender offer is contingent on successful debt financing and may be amended or terminated at Genesis's discretion.

Positive

• Initiation of a cash tender offer to buy back senior unsecured notes improves financial flexibility.
• Total consideration of $1,001.70 per $1,000 principal amount may attract noteholders.

Negative

• The tender offer is contingent upon successful completion of debt financing, introducing execution risk.

HOUSTON--(BUSINESS WIRE)-- Genesis Energy, L.P. (NYSE: GEL) today announced the commencement of a cash tender offer to purchase any and all of the outstanding aggregate principal amount of the 5.625% senior unsecured notes due 2024 that we co-issued with our subsidiary, Genesis Energy Finance Corporation. As of January 18, 2023, $341,135,000 aggregate principal amount of the notes were outstanding. The tender offer is being made pursuant to an offer to purchase and a related letter of transmittal, each dated as of January 18, 2023, and notice of guaranteed delivery. The tender offer will expire at 5:00 p.m., New York City time, on January 24, 2023, unless extended (the “Expiration Time”). Settlement is expected to occur on January 25, 2023.

Holders of notes that are validly tendered and accepted at or prior to the Expiration Time will receive in cash the total consideration of $1,001.70 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the settlement date.

The tender offer is contingent upon, among other things, our successful completion of one or more debt financing transactions, including potential debt securities offerings, in an amount sufficient to fund the purchase of validly tendered notes accepted for purchase in the tender offer and to pay all fees and expenses associated with such financing and the tender offer. The tender offer is not conditioned on any minimum amount of notes being tendered. We may amend, extend or terminate the tender offer in our sole discretion.

Tendered notes may be withdrawn at any time prior to the Expiration Time. This press release is neither an offer to purchase nor a solicitation of an offer to sell any notes. The tender offer is being made pursuant to the terms and conditions contained in the offer to purchase, the related letter of transmittal and the notice of guaranteed delivery, copies of which may be obtained from D.F. King & Co., Inc., the information agent and tender agent for the tender offer, by telephone at (800) 578-5378 (toll-free) or, for banks and brokers, at (212) 269-5550 (Banks and Brokers Only) or in writing at D.F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, New York 10005, Attention: Michael Horthman, or by email at genesis@dfking.com. Persons with questions regarding the tender offer should contact the dealer manager, Wells Fargo Securities, LLC by telephone at (866) 309-6316 (toll-free) or (704) 410-4756.

Copies of the offer to purchase, the related letter of transmittal and the notice of guaranteed delivery are also available at the following web address: www.dfking.com/genesis.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, marine transportation and onshore facilities and transportation. Genesis’ operations are primarily located in the Gulf Coast region of the United States, Wyoming and the Gulf of Mexico.

This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, no assurance can be given that our goals will be achieved, including statements related to the tender offer. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006208/en/

Genesis Energy, L.P.

Ryan Sims

SVP – Finance and Corporate Development

(713) 860-2521

Source: Genesis Energy, L.P.

FAQ

What is Genesis Energy's recent tender offer?

Genesis Energy announced a cash tender offer to purchase all outstanding 5.625% senior unsecured notes due 2024.

When does the Genesis Energy tender offer expire?

The tender offer will expire at 5:00 p.m. on January 24, 2023.

What is the total consideration offered in the Genesis Energy tender offer?

Holders of validly tendered notes will receive $1,001.70 per $1,000 principal amount plus accrued interest.

What is the outstanding amount of Genesis Energy notes as of January 18, 2023?

As of January 18, 2023, there are $341,135,000 aggregate principal amount of the notes outstanding.

What happens if the debt financing for the tender offer fails?

If the debt financing fails, the tender offer may not be completed.