Business Context and Reporting Period
Company: NGL Energy Partners LP
Filing Type: Form 8-K (Current Report)
Date of Report: March 31, 2017
Event: Entry into a Material Definitive Agreement (Amendment No. 1 to Amended and Restated Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or liquidity metrics. The document focuses exclusively on a covenant modification within the company's credit facility.
- Senior Secured Leverage Ratio Cap: Reduced from 3.50:1.00 to 3.25:1.00.
- Administrative Agent: Deutsche Bank Trust Company Americas.
Material Changes
On March 31, 2017, the Partnership and its subsidiary borrowers amended their Credit Agreement. The primary material change is the tightening of the maximum senior secured leverage ratio covenant from 3.50:1.00 to 3.25:1.00. Additionally, the amendment included an adjustment to the requirement for delivering evidence of insurance coverage.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook for future periods. No specific risks or contingencies are detailed beyond the terms of the credit agreement amendment itself. The filing notes that the description of terms is qualified by reference to Exhibit 10.1.
Investor Verification Checklist
- Verify the full text of Amendment No. 1 to the Credit Agreement (Exhibit 10.1) for additional covenants or conditions not summarized in the 8-K.
- Confirm the company's current leverage ratio to ensure compliance with the new 3.25:1.00 cap.
- Review the specific adjustments made to the insurance coverage evidence requirements.