Genesis Energy (NYSE:GEL) Enters Underwriting Agreement for $600 Million Senior Notes Offering

Genesis Energy, L.P. has entered into an underwriting agreement for a significant public offering of senior notes. The agreement, dated December 5, 2024, involves Genesis Energy, L.P. and Genesis Energy Finance Corporation, alongside certain subsidiary guarantors. Wells Fargo Securities, LLC is named as the representative of a group of underwriters participating in the offering.

The underwriting agreement outlines the issuance and sale of $600 million in aggregate principal amount of 8.000% senior unsecured notes due 2033. These notes are guaranteed by specific subsidiary guarantors of Genesis Energy. Following expected deductions for underwriting discounts, commissions, and estimated expenses, the Issuers anticipate receiving approximately $589 million in net proceeds from the offering.

Genesis intends to allocate the net proceeds from this offering towards purchasing or redeeming up to $575 million aggregate principal amount of their outstanding 8.0% senior notes due 2027. Additionally, funds will be allocated for general partnership purposes, including repaying a portion of revolving borrowings outstanding under their senior secured credit facility.

The offering of these securities is subject to certain conditions, including the receipt of legal opinions by counsel and other customary conditions. The Issuers are also bound to indemnify the underwriters against specific liabilities in connection with the offering.

The underwriting agreement further clarifies that the securities offered have been registered under the Securities Act, under the Registration Statement on Form S-3, supplemented by a Prospectus Supplement filed with the SEC.

Affiliates of some underwriters are lenders under Genesis Energy’s senior secured credit facility and may be repaid with the net proceeds from the offering, potentially receiving their proportional repayment share. Some underwriters or their affiliates are holders of Genesis Energy’s 2027 Notes and may receive a share of the offering proceeds accordingly.

Moreover, on December 5, 2024, Genesis disclosed via press releases the initiation and pricing of the Notes offering, as required under Regulation FD Disclosure. These press releases are furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

This summary of the Underwriting Agreement is supplemented with the full text of the agreement provided as Exhibit 1.1 in the Form 8-K filing. The legal and financial implications of the agreement are detailed in the filing for stakeholders’ reference. The news of this offering is significant for Genesis Energy as it aims to diversify its funding sources and strengthen its financial position in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Genesis Energy’s 8K filing here.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing.