Genesis Energy, L.P. Announces \$500 Million Senior Notes Public Offering

Genesis Energy, L.P. (NYSE: GEL), a diversified midstream energy master limited partnership headquartered in Houston, Texas, has announced a significant financial move that could impact its share value and attract the attention of investors.

Key Points of the Announcement

• Genesis Energy, L.P. is launching a registered, underwritten public offering of \$500 million in aggregate principal amount of senior notes due 2034. These notes will be co-issued with Genesis Energy Finance Corporation and initially guaranteed by all subsidiaries except for the unrestricted subsidiaries.
• Use of Proceeds:
  • Up to \$490 million of the net proceeds will be used to purchase or redeem outstanding 7.75% senior notes due 2028, or as much as can be acquired with the net cash proceeds.
  • Any remaining proceeds will be allocated for general partnership purposes, including repaying part of the revolving borrowings under the company’s senior secured credit facility.
• Offering Details:
  • BofA Securities is leading the offering, supported by several joint book-running managers and co-managers.
  • Investors can obtain the preliminary prospectus supplement and base prospectus from BofA Securities or from the SEC’s website.
  • The offering is only being made through the prospectus supplement and accompanying base prospectus, which are part of Genesis Energy’s effective shelf registration statement on Form S-3.

Important Information for Shareholders

• This offering is a potential price-sensitive event: The move to refinance outstanding debt and improve liquidity by redeeming or purchasing the 2028 senior notes, and repaying some revolving borrowings, may positively affect Genesis Energy’s financial stability and reduce interest costs.
• No Notice of Redemption: The press release clarifies that it does not constitute a notice of redemption under the indenture governing the 7.75% senior notes due 2028. Formal notice to holders of these notes will be provided separately.
• Forward-Looking Statements: Genesis Energy notes that while it believes its goals are based on reasonable assumptions, there is no assurance the offering will be successfully closed or that proceeds will be used as intended. Actual results may vary materially.

Company Profile and Operations

• Genesis Energy’s operations encompass offshore pipeline transportation, marine transportation, and onshore transportation and services, primarily in the Gulf Coast region of the United States and the Gulf of America.

Investor Contact

For further information, investors can contact Dwayne Morley, VP – Investor Relations at (713) 860-2536.

Potential Impact on Share Price

• This debt offering and the company’s intent to refinance outstanding notes may be viewed positively by investors as it signals management’s proactive steps toward strengthening the balance sheet and improving capital structure.
• Successful completion of the offering and effective use of proceeds could enhance Genesis Energy’s financial flexibility and reduce future interest expense, which may influence share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should review official filings and consult with their financial advisors before making any investment decisions. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations.

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