Tallgrass Energy Prices Upsized Offering of $800 Million of 7.375% Senior Notes Due 2029

LEAWOOD, Kan.--(BUSINESS WIRE)--Tallgrass Energy Partners, LP (“TEP”) announced today that it, along with Tallgrass Energy Finance Corp., a subsidiary of TEP, priced an offering of $800 million in aggregate principal amount of 7.375% senior unsecured notes due 2029 at an offering price equal to 100% of par (the “Notes Offering”). The size of the offering was increased from the previously announced $700 million to $800 million.

The Notes Offering is expected to close January 23, 2024, subject to satisfaction of customary closing conditions. TEP intends to use the net proceeds of the Notes Offering to fund the purchase of its outstanding 7.50% Senior Notes Due 2025 (the “2025 Notes”) in the concurrent cash tender offer (the “Tender Offer”), to deposit funds with the trustee sufficient to satisfy and discharge the indenture and any 2025 Notes outstanding after completion of the Tender Offer until redeemed on October 1, 2024 with the funds deposited with the trustee and to repay a portion of the outstanding balance of its revolving credit facility, with any excess to be used for general partnership purposes. The Tender Offer is being made pursuant to an Offer to Purchase dated January 16, 2024.

The securities to be offered have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. TEP plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.

Cautionary Note Concerning Forward-Looking Statements

Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the Notes Offering, the use of proceeds therefrom and timing and outcome of the Tender Offer. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of TEP, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by TEP. Any forward-looking statement applies only as of the date on which such statement is made, and TEP does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

About Tallgrass

Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass.