HOUSTON - Genesis Energy, L.P. (NYSE: NYSE:GEL) has launched a public offering of $500 million in senior unsecured notes due in 2032, in collaboration with its subsidiary, Genesis Energy Finance Corporation. The offering is subject to market conditions and other factors.
The notes are planned to be co-issued and, except for certain unrestricted subsidiaries, guaranteed by most of Genesis Energy's existing and future subsidiaries. The company aims to allocate the net proceeds from this offering to redeem their outstanding 6.250% senior unsecured notes due in 2026. The remaining funds will be used for general partnership purposes, which include repaying part of the outstanding borrowings under their credit facility.
RBC Capital Markets, LLC is the lead underwriter for the offering, supported by various joint book-running managers and co-managers. Interested parties can obtain the preliminary prospectus supplement and accompanying base prospectus from RBC Capital Markets or by visiting the Securities and Exchange Commission's (SEC) website.
Genesis Energy, L.P., headquartered in Houston, Texas, is a diversified midstream energy master limited partnership. The company's operations span across offshore pipeline transportation, soda ash and sulfur services, marine transportation, and onshore facilities and transportation, mainly located in the Gulf Coast region of the United States, Wyoming, and the Gulf of Mexico.
This news is based on a press release statement from Genesis Energy, L.P.
InvestingPro Insights
As Genesis Energy, L.P. (NYSE: GEL) ventures into the market with its public offering of senior unsecured notes, it's crucial for investors to have a comprehensive understanding of the company's current financial standing. According to InvestingPro data, Genesis Energy has a market capitalization of $1.56 billion and is trading at a P/E ratio of 36.95, indicating a high earnings multiple. This is slightly adjusted from the last twelve months as of Q1 2024, with a P/E ratio of 36.26.
In the same period, the company has reported a revenue of approximately $3.16 billion, reflecting a growth of 7.09%. Despite a quarterly dip of -2.59%, the overall revenue growth remains positive. The gross profit margin stands at 22.15%, showcasing the company's ability to maintain profitability. Investors are also drawn to Genesis Energy's impressive track record of dividend payments, with the company maintaining these for 28 consecutive years, and currently offering a dividend yield of 4.7%.
Genesis Energy's stock performance has also been noteworthy. An InvestingPro Tip highlights that the company's shares have seen a strong return over the last three months, with a 16.35% price total return. Moreover, the stock is trading near its 52-week high, at 99.53% of this peak value. These metrics underscore the company's robust market presence and could be indicative of investor confidence in its long-term prospects.
For investors looking to delve deeper into Genesis Energy's financials and stock performance, additional InvestingPro Tips are available. For instance, while the company operates with a significant debt burden, it has managed to remain profitable over the last twelve months. To access these insights and more, investors can visit InvestingPro for a total of 6 tips to help inform their investment decisions. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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