Genesis Energy, L.P. Upsizes and Prices Public Offering of Senior Notes

Rhea-AI Summary

Genesis Energy, L.P. (NYSE: GEL) has raised $750 million through a public offering of 8.0% senior unsecured notes due 2027, up from the initial $550 million. The notes are priced at 100% of their principal amount and are co-issued with Genesis Energy Finance Corporation. Proceeds will fund the purchase of existing 6.000% senior unsecured notes due 2023 and for general partnership purposes, including repaying revolving credit facility borrowings. The offering is expected to close on December 17, 2020, subject to conditions.

Positive

• Successfully upsized the offering from $550 million to $750 million, indicating strong market demand.
• Proceeds intended for refinancing existing debt, thus potentially lowering interest expenses.

Negative

• Issuance of new notes could lead to shareholder dilution.
• Market reaction may be cautious due to increased debt obligations.

HOUSTON--(BUSINESS WIRE)--Genesis Energy, L.P. (NYSE: GEL) today announced that it has priced a public offering of $750,000,000 in aggregate principal amount of 8.0% senior unsecured notes due 2027. The offering was upsized from the previously announced $550,000,000 in aggregate principal amount of the notes. The price to investors will be 100% of the principal amount of the notes. The notes will be co-issued with our subsidiary, Genesis Energy Finance Corporation, and will be guaranteed, with certain exceptions, by substantially all of our existing and future subsidiaries other than our unrestricted subsidiaries. We intend to use a portion of the net proceeds from the offering to fund the purchase price and accrued and unpaid interest for all of our 6.000% senior unsecured notes due 2023 that are validly tendered and accepted for payment in our concurrent tender offer and the redemption price and accrued and unpaid interest for any 6.000% senior unsecured notes due 2023 that remain outstanding after the completion or termination of our concurrent tender offer and the remainder for general partnership purposes, including repaying a portion of the borrowings outstanding under our revolving credit facility. The offering of the notes is expected to settle and close on December 17, 2020, subject to customary closing conditions.

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

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

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

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

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

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

BBVA Securities Inc.
1345 6th Avenue
New York, NY 10105

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

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

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 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, 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.