Genesis Energy, L.P. Upsizes and Prices Public Offering of Additional 8.0% Senior Notes Due 2027

Rhea-AI Summary

Genesis Energy (NYSE: GEL) has announced the pricing of an upsized public offering of $250 million in 8.0% senior unsecured notes due 2027, up from the initially planned $200 million. The notes are part of an existing class and will rank equally with prior notes issued. The proceeds will support general partnership activities, primarily to repay revolving credit borrowings. The offering is set to close on April 22, 2021, pending standard conditions.

Positive

• Upsizing of the offering to $250 million indicates strong market demand.
• Proceeds intended for repaying revolving credit might enhance financial stability.

Negative

• Issuance of additional notes may lead to dilution for existing shareholders.

Genesis Energy, L.P. (NYSE: GEL) (“Genesis” or the “Company”) today announced the pricing of a registered, underwritten public offering of $250,000,000 in aggregate principal amount of 8.0% senior unsecured notes due 2027. The offering was upsized from the previously announced $200,000,000 in aggregate principal amount of the notes. The notes will be co-issued with our subsidiary, Genesis Energy Finance Corporation (“GEFC”), and will be guaranteed, with certain exceptions, by substantially all of our existing and future subsidiaries other than our unrestricted subsidiaries. The notes offered will be issued as additional notes, and are expected to rank equally with, and be treated as a single class of notes under the indenture pursuant to which the Company and GEFC issued $750,000,000 aggregate principal amount of their currently outstanding 8.0% senior unsecured notes due 2027 on December 17, 2020. The price to investors will be 103.75% of the principal amount of the notes, plus accrued interest from December 17, 2020. We intend to use the net proceeds from the offering for general partnership purposes, including repaying a portion of the revolving borrowings outstanding under our credit facility. The offering of the notes is expected to settle and close on April 22, 2021, subject to customary closing conditions.

BofA Securities, Inc., Wells Fargo Securities, LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Capital One Securities, Inc., Citigroup Global Markets, Inc., Fifth Third Securities, Inc., RBC Capital Markets, LLC, Regions Securities LLC, and Scotia Capital (USA) Inc. are acting as joint book-running managers for the offering and Comerica Securities, Inc. is acting as co-manager. A copy of the final prospectus supplement and accompanying base prospectus relating to this offering, when available, may be obtained from:

BofA Securities, Inc.
NC1-004-03-43
200 North College Street, 3rd Floor
Charlotte, NC 28255-0001
Attn: Prospectus Department
Email: dg.prospectus_requests@bofa.com

Wells Fargo Securities, LLC
550 S. Tryon Street, 5th Floor
Charlotte, NC 28202
Attn: Leveraged Syndicate

SMBC Nikko Securities America, Inc.
277 Park Avenue
New York, NY 10172
Tel: 888-868-6856
Attention: Debt Capital Markets

BNP Paribas Securities Corp.
787 Seventh Avenue
New York, NY 10019
Attention: Syndicate Desk
Tel: 212-841-2871

Capital One Securities, Inc.
201 St. Charles Ave., Suite 1830
New Orleans, Louisiana 70170
Attention: Gabrielle Halprin

Citigroup Global Markets Inc.
Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717

Fifth Third Securities, Inc.
38 Fountain Square Plaza
Cincinnati, OH 45263
Attn: Syndicate Department
Tel: 866-531-5353

RBC Capital Markets
Attn: HY Capital Markets
200 Vesey St – 8th Floor
New York, NY 10281
Telephone: (212) 428-6200

Regions Securities LLC
1180 West Peachtree St. NW, Suite 1400
Atlanta, GA 30309
Attention: Debt Capital Markets
Telephone: (704) 940-5066

Scotia Capital (USA) Inc.
250 Vesey Street
New York, New York 10281

Comerica Securities, Inc.
3551 Hamlin Road, 4th Floor
MC 7476
Auburn Hills, MI 48326

You may also obtain these documents for free, when they are available, by visiting the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offer is being made only through the prospectus supplement and accompanying base prospectus, each of which is part of our effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission.

Genesis is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation and marine 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 regarding our ability to successfully close the offering and to use the net proceeds as indicated above. 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/20210420005338/en/

FAQ

What is the amount of the Genesis Energy GEL note offering?

Genesis Energy has priced an offering of $250 million in senior unsecured notes.

What is the interest rate and maturity date for the GEL notes?

The notes have an interest rate of 8.0% and are due in 2027.

What will the proceeds from the GEL note offering be used for?

The proceeds will be used for general partnership purposes, including repaying revolving borrowings.

When is the Genesis Energy GEL note offering expected to close?

The offering is expected to settle and close on April 22, 2021.

What impact does the GEL note offering have on shareholders?

The issuance of additional notes could lead to dilution for existing shareholders.