Genesis Energy, L.P. Announces the Expiration of Its Tender Offer for Any and All of Aggregate Principal Amount of Its 6.000% Senior Notes Due 2023

Rhea-AI Summary

Genesis Energy, L.P. (NYSE: GEL) has completed its cash tender offer for all outstanding 6.000% senior unsecured notes due 2023. As of the December 16, 2020 expiration time, $308,783,000 (79.25%) of the notes were validly tendered. The company plans to redeem any untendered notes following the terms of the indenture. The settlement date is expected to be December 17, 2020. Genesis Energy operates in the midstream energy sector, focusing on pipeline transportation and marine services mainly in the Gulf Coast region.

Positive

• $308,783,000 (79.25%) of senior unsecured notes successfully tendered.
• Upcoming redemption of untendered notes indicates strong management of debt.

Negative

• $557,000 of notes remain subject to guaranteed delivery, indicating potential liquidity concerns.

Genesis Energy, L.P. (NYSE: GEL) today announced that its previously announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of the 6.000% senior unsecured notes due 2023 that we co-issued with our subsidiary, Genesis Energy Finance Corporation (the “Notes”) expired at 5:00 p.m., New York City time, on December 16, 2020 (the “Expiration Time”). As of the Expiration Time, $308,783,000 aggregate principal amount of the outstanding Notes (79.25%) were validly tendered, which excludes $557,000 aggregate principal amount of the outstanding Notes that remain subject to guaranteed delivery procedures. The settlement date for the Notes is expected to be December 17, 2020.

Pursuant to the terms of the tender offer, Notes not tendered in the tender offer will remain outstanding. We intend to call such outstanding Notes for redemption in accordance with the terms and conditions of the indenture governing the Notes.

Persons with questions regarding the tender offer should contact the dealer manager, RBC Capital Markets, LLC by telephone at telephone at (877) 371-2099 (toll-free) or (212) 618-7843, or the information agent and tender agent, D. F. King & Co., Inc., by telephone at (877) 283-0325 (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: Andrew Beck, or by email at genesis@dfking.com.

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 and redemption. 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/20201217005600/en/

FAQ

What was the outcome of Genesis Energy's tender offer for the 6.000% senior unsecured notes due 2023?

Genesis Energy's tender offer resulted in $308,783,000 (79.25%) of the notes being validly tendered by the expiration time.

When is the settlement date for the tender offer by Genesis Energy?

The settlement date for the tender offer is expected to be December 17, 2020.

What happens to the notes not tendered in the offer by Genesis Energy?

Untendered notes will remain outstanding, with plans for redemption according to the indenture terms.

How much of the senior unsecured notes were not tendered in Genesis Energy's offer?

A total of $557,000 of the senior unsecured notes remain subject to guaranteed delivery procedures.

What is the primary focus of Genesis Energy's operations?

Genesis Energy primarily focuses on midstream energy services, including pipeline transportation and marine services.