HOUSTON-based Genesis Energy LP (NYSE:GEL) has successfully closed its offering of $600 million in senior unsecured notes, with an 8.000% interest rate, due to mature on May 15, 2033. The company announced today that the offering, which was first reported on December 5, 2024, had been completed. The notes were sold under an Underwriting Agreement with Wells Fargo (NYSE:WFC) Securities, LLC, acting as the representative for the underwriters.
The securities, guaranteed by certain subsidiary guarantors, are set to accrue interest at an annual rate of 8.000%, with payments due semi-annually starting May 15, 2025. The proceeds from this offering are earmarked for purchasing $575 million of the company's outstanding 8.0% senior notes due in 2027 and for general partnership purposes, including repaying a portion of the revolving borrowings under Genesis Energy's senior secured credit facility.
These newly issued notes are on par with Genesis' other existing and future senior unsecured indebtedness, including various notes due between 2027 and 2032. The guarantees from subsidiary guarantors are also ranked equally in right of payment with their existing and future senior unsecured indebtedness.
The terms of the securities are outlined in the Prospectus Supplement dated December 5, 2024, and are governed by an Indenture dated May 21, 2015, as well as the Twenty-Second Supplemental Indenture, both of which were filed with the SEC.
Genesis Energy operates in the pipeline sector under the industrial classification of PIPE LINES (NO NATURAL GAS) [4610], with its common units traded on the NYSE under the ticker symbol GEL. This financial move is part of the company's broader strategy to manage its debt portfolio and ensure financial flexibility.
The completion of this transaction was made in accordance with the Securities Act of 1933, as amended, and was filed with the SEC as part of Genesis Energy's obligations. The legal opinions regarding the legality of the securities and other related matters were provided by Paul Hastings LLP, Liskow & Lewis (JO:LEWJ), A Professional Law Corporation, and Bradley Arant Boult Cummings LLP.
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