Ferrellgas enters into $575 million five-year secured credit facility

By Tali Rackner

Minneapolis, May 7 – Ferrellgas LP, the operating partnership of Ferrellgas Partners, LP, entered into a new $575 million senior secured credit facility with TPG Specialty Lending, Inc., according to a press release.

The new five-year facility includes a $300 million cash flow revolver supported by commitments from TPG Specialty Lending and PNC Bank, NA, as well as a $275 million term loan.

The revolver includes a $125 million sublimit for letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings under the facility, which matures on May 4, 2023, bear interest at Libor plus 575 basis points.

The facility replaces the current $575 million senior secured revolving credit facility that was scheduled to mature in October 2018.

At closing, term loan proceeds were used to repay and terminate the existing facility. No revolving credit loans were outstanding but about $100 million of letters of credit were issued, resulting in roughly $75 million of surplus cash on the operating partnership’s balance sheet, the filing noted.

The new facility contains various affirmative and negative covenants and default provisions, as well as requirements with respect to the maintenance of specified financial ratios and limitations on the making of loans and investments.

Ferrellgas is an Overland Park, Kan.-based distributor of propane and related equipment.

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