Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. Issue $175,000,000 8% Senior Notes Due 2020
January 30, 2017 at 11:34 pm IST
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On January 30, 2017, Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. issued and sold $175,000,000 aggregate principal amount of the Issuers' 8% Senior Notes due 2020 in a private offering. The Notes were issued at a price of 96.0% of par, plus accrued interest from December 15, 2016. Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. received net proceeds from the offering of approximately $164.2 million, after deducting the initial purchasers' discount and expenses of the offering. The Partnership used the net proceeds from the offering to repay borrowings under the secured credit agreement, dated as of November 2, 2009, of Ferrellgas, L.P., the company's operating partnership. The Notes constitute a further issuance of the Issuers' 8% Senior Notes due 2020 (the 8% Senior Notes) first issued on April 13, 2010, of which $182 million aggregate principal amount was outstanding prior to the issuance of the Notes. Following the issuance of the Notes, the Issuers have outstanding $357 million aggregate principal amount of the 8% Senior Notes. The Notes will mature on June 15, 2020, and interest on the Notes is payable semi-annually in cash in arrears on June 15 and December 15 of each year, commencing on June 15, 2017, at a rate of 8.625% per annum. Interest on the Notes will accrue from December 15, 2016. The Notes are general unsecured joint obligations of the Issuers, ranking equally with all other existing and future unsecured and unsubordinated indebtedness of the Issuers.
Ferrellgas Partners, L.P. is a holding company. The Company is primarily engaged in the retail distribution of propane and related equipment sales, through its subsidiaries, Ferrellgas Partners Finance Corp. and Ferrellgas, L.P. (operating partnership). Its operations primarily include the distribution and sale of propane and related equipment and supplies in approximately 50 states, the District of Columbia and Puerto Rico. The Company serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers. The Company delivers propane to its industrial/commercial and portable tank exchange customers using its fleet of portable tank and portable tank exchange delivery trucks, truck tractors and portable tank exchange delivery trailers.