Moody’s rates AmeriGas notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to AmeriGas Partners, LP's proposed $550 million senior unsecured notes due 2025.

AmeriGas' other ratings and stable outlook were unchanged.

Net proceeds will be used to tender a portion of the 7% senior notes due 2022.

"This is a leverage neutral transaction," Moody's senior analyst Sajjad Alam said in a news release.

"However, these 2025 notes will lighten AmeriGas' 2022 refinancing needs."

The proposed notes will rank equally in right of payment with AmeriGas' existing 2024 and 2026 senior notes.

The new notes were assigned a Ba3 rating, a notch below the Ba2 corporate family rating, given the size of the priority claim credit facility in AmeriGas' capital structure.

Any remaining balance on the existing 7% 2022 notes will continue to be rated Ba2, one notch above the new notes, as they have a Contingent Residual Support Agreement with Energy Transfer Partners. LP, a Baa3 rated entity.

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