AmeriGas files shelf for $60 million add on to 8 7/8% notes due 2011

New York, March 7 - AmeriGas Partners LP filed a shelf registration with the Securities and Exchange Commission for a $60 million add on to its 8 7/8% series B senior notes due 2011.

AmeriGas did not name an underwriter for the notes. Instead, the company said it will sell the notes in one or more transactions, either through an underwriter or to investors, either direct or through an agent or dealer. Sales will be announced through prospectus filings with the SEC.

The King of Prussia, Pa. propane distributor said it will use proceeds from selling the notes to repay some or all of its $60 million first mortgage notes when they mature on April 19, 2002.

Depending on when the company sells the new notes, it may also temporarily use borrowings under its revolving credit facility to repay the maturing notes. Any proceeds left over from selling the new notes will be used for general business purposes.

The weighted average interest rate on the outstanding first mortgage notes is 10.09%, AmeriGas said.

AmeriGas currently has $200 million of the 8 7/8% notes outstanding which are issued jointly by AmeriGas and AP Eagle Finance Corp.

The notes mature on May 20, 2011 and they are callable beginning May 20, 2006 at 104.438, declining to 102.958 in 2007, 101.479 in 2008 and par in 2009.

Through May 20, 2004 there is an equity claw for up to 33% of the notes at 108.875.

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