AmeriGas sets talk for $500 million five-year notes in 9¼% area; pricing Monday

By Abigail W. Adams

Portland, Me., May 22 – AmeriGas Partners LP and AmeriGas Finance Corp. plan to price $500 million of five-year senior notes (B1//BB-) in a Monday drive-by with price talk for a yield in the 9¼% area, according to a market source.

Early guidance was for a yield in the low 9% area.

The notes are non-callable for two years.

Books are scheduled to close at 2 p.m. ET on Monday with pricing expected thereafter.

Wells Fargo Securities LLC (lead left), BofA Securities Inc., Citizens Capital Markets Inc., Credit Agricole CIB and J.P. Morgan Securities LLC are bookrunners for the Rule 144A and Regulation S offering.

Proceeds will be used, together with cash on hand and a $150 million contribution from UGI Corp and or other sources, to refinance the company’s 5 5/8% senior notes due 2024.

AmeriGas is a King of Prussia, Pa.-based propane distributor.

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