Ferrellgas reaches agreement with lender regarding alleged defaults

By Sarah Lizee

Olympia, Wash., Nov. 12 – Ferrellgas, LP, the operating partnership of Ferrellgas Partners, LP, announced that it reached an agreement with TPG Specialty Lending, Inc., the administrative agent under its senior secured credit facility, regarding alleged events of default that occurred under the credit facility.

Under the agreement, the facility was amended and modified to increase the $300 million revolving credit facility sub-limit for issuance of letters of credit to $140 million from $125 million, according to an 8-K filing with the Securities and Exchange Commission.

The definition of consolidated non-acquisition capital expenditures was also amended to provide an exclusion for payments made during construction of vehicles used for propane delivery and related service when those payments are reimbursed upon the creation of operating leases for these vehicles provided that certain conditions are met.

The amendment waives any prior event of default that have or would otherwise have occurred solely by reason of the failure to (a) deliver an unqualified report of Grant Thornton, the company’s independent registered accounting firm, as to going concern with respect to the audited financial statements of Ferrellgas and its subsidiaries for the fiscal year ended July 31, 2019, and (b) timely deliver financial statements of Ferrellgas for the fiscal quarter ended July 31, 2019 and related compliance certificate.

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

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