Published on 1/5/2012 in the Prospect News High Yield Daily.
New Issue: AmeriGas Finance prices $1.55 billion of eight-, 10-year senior notes
By Paul A. Harris
Portland, Ore., Jan. 5 - AmeriGas Finance LLC and AmeriGas Finance Corp. priced $1.55 billion of senior notes (Ba2//BB+) in two tranches on Thursday, according to an informed source.
The deal included $550 million of eight-year notes, which priced at par to yield 6¾%, and $1 billion of 10-year notes, which priced at par to yield 7%.
The notes of both tranches priced on top of the price talk. The 10-year notes were talked with a yield in the 7% area, and the eight-year notes were talked to yield 25 basis points tighter than the 10-year notes.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.
Proceeds will be used to fund the acquisition of Heritage Propane and Titan Propane from Energy Transfer Partners, LP.
AmeriGas is a Valley Forge, Pa.-based retail propane marketer.
| Issuers: | AmeriGas Finance LLC and AmeriGas Finance Corp.
|
| Amount: | $1.55 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC
|
| Senior co-managers: | RBS Securities Inc., PNC Capital Markets LLC
|
| Co-managers: | TD Securities, BB&T Capital Markets, Santander Investment Securities Inc.
|
| Trade date: | Jan. 5
|
| Settlement date: | Jan. 12
|
| Ratings: | Moody's: Ba2
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $550 million
|
| Maturity: | May 20, 2020
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 509 bps
|
| Call features: | Callable on May 20, 2016 at 103.375, 101.688, par on and after May 20, 2018
|
| Equity clawback: | 35% at 106.75 until May 20, 2015
|
| Price talk: | 25 bps tighter than the yield on the 10-year notes
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | May 20, 2022
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 500 bps
|
| Call features: | Callable on May 20, 2017 at 103.5, 102.333, 101.167, par on and after May 20, 2020
|
| Equity clawback: | 35% at 107 until May 20, 2015
|
| Price talk: | 7% area
|
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